Consumer Sentiment Index Tops High Forecast

Tariffs and talk of trade wars may be pulling down expectations but they aren't affecting the consumer's immediate view. The consumer sentiment index for preliminary June tops Econoday's high forecast, at 99.3 for the best showing in two months. In a positive indication for June consumer spending, the current conditions component is surging this month, up more than 6 points to 117.9 reflecting ongoing strength in household finances and rising buying plans for durables. This offsets a nearly 2 point decline in expectations to 87.4, a dip reflecting a less favorable view among consumers for the economy. Inflation expectations are moving higher, up 1 tenth each for both the year-ahead and 5-year outlooks, at 2.9 and 2.6 percent respectively.