UMich ‘Current Conditions’ Sentiment Crumbles to 13-Month Lows, Inflation Expectations Tumble

The final print for UMich sentiment survey in June saw sentiment improve over the course of the month and inflation expectations decline further from 3.3% flash to 3.0% final for 1y expectations…

Source: Bloomberg

But sentiment overall was lower month over month (despite an uptick intramonth) with the headline dropping from 69.1 to 68.2 with a bid drop in current conditions (lowest since May 2023)…

Source: Bloomberg

UMich’s Joanne Hsu notes that:

“While consumers exhibited confidence that inflation will continue to moderate, many expressed concerns about the effect of high prices and weakening incomes on their personal finances. These trends offset the improvements in the short- and long-run outlook for business conditions stemming in part from expectations for softening interest rates.”

That’s reflected in buying conditions crashing across the board…

Source: Bloomberg

As we detailed here, the UMich data indeed shows that a growing majority are giving up hope they’ll ever be able to afford the traditional middle class lifestyle of a car, home, and eventual retirement.