Consumers feel a bit better now, but outlook dims
— -- Consumer sentiment rose only slightly in June, remaining at a low level, according to a report Friday by the University of Michigan and Reuters.
The consumer sentiment index rose to 69 in mid-June from 68.7 in May, the latest survey showed. Economists were generally looking for a stronger June result of 71. The index hit a 28-year low 55.3 in November, and has averaged 88.2 the past 10 years.
Friday's report indicates higher prices for gasoline and continued job losses are dampening optimism about consumers' present circumstances, analysts said. That differs from previous readings, which showed that consumers felt better about the future than current conditions.
"The flip in these readings, which showed some pullback in expectations, is partly related to the ongoing weakness in the labor market, which continues to be incredibly difficult for those individuals that have lost a job in the past year, depressing expectations about the future," wrote Dan Greenhaus of the equity strategy group at Miller Tabak.
Consumers' views on current conditions rose in June to 74.5 from 67.7 in May. But their future expectations fell to 65.4 from 69.4. Consumers' expectations for one-year inflation rose to 3.1% from 2.8%.
"The fact that the future suddenly looks bleaker is not encouraging," wrote Ian Pollick, economics strategist with TD Securities.
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