The University of Michigan announced the leading data of the Consumer Confidence Index for June, which was prepared in line with the trends of American consumers.
Accordingly, Consumer Confidence increased by 4.7 points to 63.9 in June compared to the previous month. The consumer confidence index, which exceeded the market expectations, was expected to take the value of 60 in this period. Consumer confidence index stood at 59.2 in May.
The current economic conditions index, which measures Americans’ assessment of current financial conditions, rose 3.1 percentage points month on month to 68 in June.
The consumer expectations index, which reflects the long-term projections of consumers, increased by 5.9 points to 61.3 in the same period.
Joanne Hsu, Director of Consumer Surveys, whose views were included in the statement, stated that consumer confidence has reached its highest level in the last 4 months as a reflection of the increasing optimism with the decrease in inflation and the resolution of the debt limit crisis.
Emphasizing that consumer confidence is about 28 percent higher than a year ago, Hsu noted that as income expectations soften, confidence continues to be low by historical standards.
Underlining that most consumers still expect tough times in the economy next year, Hsu said that short-term inflation expectations fell to 3.3 percent in June, the lowest level since March 2021.
Stating that long-term inflation expectations are 3 percent, Hsu noted that this remains higher than the 2.2-2.6 percent range seen in the 2 years before the pandemic.