US consumer economic sentiment, which had fallen to a record low, improved as gasoline prices declined on expectations of a ceasefire agreement between the United States and Iran.
The University of Michigan said Thursday that its preliminary consumer sentiment index for June came in at 48.9. The figure was up 4.1 points from May's final reading of 44.8, the lowest since the survey began in 1952. It also exceeded the consensus estimate of 46.0 compiled by Dow Jones.
Joanne Hsu, director of the survey, said that consumer sentiment improved broadly regardless of age, education level, or political affiliation. "The increase was particularly large among lower-income households, for whom gasoline costs account for a large share of the household budget," she explained.
Consumers, however, still cited inflationary pressure as their biggest concern. Consumers' expected inflation over the next year recorded 4.6 percent, lower than May's 4.8 percent but still at an elevated level. Five-year expected inflation declined to 3.4 percent from 3.9 percent in May.
