Consumer confidence beats expectations

The University of Michigan’s preliminary consumer sentiment index was higher than forecast in June, but fell from last month’s level.

The index was 94.3, beating the estimate for 94, and down a hair from 94.7 prior.

The survey showed that consumers grew more concerned about the economy. Their rating of government economic policy suddenly tanked to the weakest level in almost two years.

Consumers said they might increase their savings and delay spending if the pace of job creation does not pick up.

But they were bullish on their personal finances, and the rating of their financial situation was at its best level since the 2007 peaks in anticipation of higher wages.

Meanwhile, they think that inflation will have a minimal impact on their real incomes; long-run inflation expectations fell 0.2 percentage points to 2.3%, a record low.

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