CHICAGO, June 30 (Xinhua) -- The Consumer Sentiment Index released Friday by the University of Michigan (UM) Surveys of Consumers rose to 64.4 in June, up from 59.2 in May and above last June's 50.0.
The Current Index rose to 69.0, up from 64.9 in May and above last June's 53.8. The Expectations Index rose to 61.5, up from 55.4 in May and above last June's 47.5.
The year-ahead economic outlook soared 28 percent over May, and long-run expectations rose 11 percent as well. These improvements were supported both by easing inflation as well as the lifting of the debt ceiling.
Confidence in government economic policy rose for the first time in five months, with Independents registering the strongest increase.
However, high interest rates have continued to keep these purchases costly. The prices consumers face day-to-day remain painfully high. About 41 percent of consumers blamed high prices for eroding their personal finances, little changed from the previous two months.
In addition, consumers expressed concerns about a weakening labor market and expect slower income growth over the year ahead. Only 14 percent of consumers expect any income gains to outstrip inflation, the lowest share in a year.
The consensus view among consumers is that macroeconomic prospects improved in June, according UM economist Joanne Hsu, director of the surveys. Sentiment is now 29 percent above the historic trough reached a year ago but remains low overall, as most consumers still expect difficult times in the economy over the next year.
"The fight against inflation has far to go before consumers feel more settled about the economy," Hsu said.
The Surveys of Consumers is a rotating panel survey based on a nationally representative sample that gives each household in the coterminous United States an equal probability of being selected. Interviews are conducted throughout the month by telephone. ■