Consumer Confidence Falls To a 28-Year Low in June
U.S. consumer confidence tumbled more than expected in June, hitting another 28-year low as high inflation and rising unemployment weighed on sentiment, according to a survey released on Friday.
Long-term inflation expectations, a key focus of recent inflation concerns expressed by the Federal Reserve, held steady on May's peak, which was the highest in 13 years.
The Reuters/University of Michigan Surveys of Consumers also said short-term inflation expectations declined slightly, though they remained just off their highest in 26 years.
The Surveys of Consumers said the June reading for its index of confidence fell to 56.7 from May's 59.8.
The June reading is the lowest since 51.7 in May 1980, which was the lowest reading ever for the index.
The median expectation of economists for the index was 59.5,according to a Reuters survey.
The forecasts ranged from 55.0 to63.1.
"Consumer confidence continued to decline under the weight of surging prices and mounting unemployment, sinking to its lowest level since 1980," the Surveys of Consumers said.
The report's gauge of five-year inflation expectations held steady at May's peak of 3.4 percent, which was the highest since April 1995.
One-year inflation expectations declined to 5.1 percent from May's 5.2 percent.
May's one-year inflation expectations reading was highest since 5.2 percent in February 1982.
The index of consumer expectations fell to 49.0 in June -- its lowest since May 1980.
This was down from May's 51.1.