– US consumer sentiment rose in early June for the first time in four months as lower gasoline prices provided some relief for Americans grappling with a surge in inflation.
Most Read from Bloomberg The University of Michigan’s preliminary sentiment index increased to 48.9 in June from a record low 44.8 in May, according to the survey released Friday
That was higher than most economists in a Bloomberg survey expected, but it’s still the second lowest reading in data back to the 1970s. Consumers expect prices to rise at an annual rate of 4.6% over the next year, down from 4.8% in May. They also saw costs rising at an annual rate of 3.4% over the next five to 10 years, erasing the prior month’s jump.
While gasoline prices are still above pre-war levels, the drop seen in recent weeks led Americans to be less pessimistic about their personal finances. The report showed a notable improvement among lower-income consumers, who typically allocate a larger share of their budget to fuel. Even so, overall sentiment remains depressed amid the Iran war and the wave of inflation it sparked.