Consumer Confidence Tumbles to Another 28-Year Low
U.S. consumer confidence fell more than expected in June, hitting another 28-year low as surging prices and mounting job losses sapped sentiment, according to a survey.
The Reuters/University of Michigan Surveys of Consumers also said five-year inflation expectations remained steady at the peak of 3.4 percent reached in May, which was the highest in 13 years.
Federal Reserve officials have focused on long-term inflation expectations in recent comments and the persistence of strong inflationary pressures heightens the dilemma they face of fighting price growth or supporting a flagging economy.
The Surveys of Consumers said the final June reading for its index of confidence fell to 56.4 from May's 59.8. The June reading is the lowest since 51.7 in May 1980, which was also the lowest reading ever.
The index dates back to 1952, though the survey has been conducted since 1946. Economists had expected a reading of 57.0, according to a Reuters poll. Their forecasts ranged from 55.9 to 60.0.
The final June result is slightly below the preliminary figure of 56.7 released on June 13.
One-year inflation expectations declined to still-elevated 5.1 percent from May's 5.2 percent. May's one-year inflation expectations reading was the highest since 5.2 percent in February 1982.
The index of consumer expectations fell to 49.2 in June -- its lowest since May 1980. This was down from May's 51.1.
Meanwhile, the index of current personal finances fell to 69 in June -- the lowest on record -- from 80 in May.