WASHINGTON, June 12 (Reuters) – U.S. consumer sentiment improved in early June as easing gasoline prices offered households some relief, though concerns about inflation lingered, a survey showed on Friday.
The University of Michigan’s Surveys of Consumers said its Consumer Sentiment Index increased to 48.9 this month from a record low of 44.8 in May. Economists polled by Reuters had forecast the index climbing to 46.0.
“Lower-income consumers exhibited a particularly strong sentiment increase, consistent with the fact that gasoline comprises a larger share of their budgets,” said Joanne Hsu, the director of the Surveys of Consumers. “Consumers remain focused on kitchen table issues. They feel burdened by the recent escalation in inflation and worry that higher inflation could remain stubborn going forward, particularly in the short run.”
The survey’s measure of consumer expectations for inflation over the next year slipped to a still-high 4.6% this month from 4.8% in May. Consumers’ expectations for inflation over the next five years dropped to 3.4% from 3.9% last month.
(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)
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