The Reuters/University of Michigan consumer sentiment gauge closed near the six month high set in May at 84.1 for June; 82.8 was previously forecasted. The survey’s director, Richard Curtin, said “”Consumers believe the (economic) recovery has achieved an upward momentum that will not be easily reversed.” Curtin also concluded that even with the recent equity selloff and increases in mortgage rates, consumers are still have hopes of the economy snapping back.
Divergences were seen in higher-income households and their less-fortunate counterparts. Those with more wealth seem to be more optimistic about the economy, but that, I assume, is to be expected. Families in the top third of all households were the most optimistic since 2007.
Inflation showed little change in the survey’s one- and five-to-ten year outlook. Inflation ticked down to 3 percent from 3.1 percent in May for the one-year outlook; and the five-to-ten year outlook showed no change at 2.9 percent for the third straight month.
The dollar index began erasing losses prior to the release (I guess it helps when you pay for the outcome prior to release) and is currently seeing a .42 percent gain, 83.51.
The euro fell hard from 1.31 to remain hovering 1.3. Sterling, Canadian dollar and Aussie also down hard.