Consumer Sentiment Upbeat, But Less Optimistic

Consumers were upbeat about June but turned less optimistic on the outlook. These were the results of Tuesday's report on consumer confidence and today's consumer sentiment report. June's current conditions component rose a sharp 5.7 points to 116.5 which hints at bounce-back strength for the month's consumer spending, but the expectations component, subdued by tariff concern, fell 2.8 points to 86.3 which is lowest reading since mid-January. In an echo of this morning's Chicago PMI, one quarter of the sentiment sample are citing the potential impact of tariffs as an issue. Whether or not tariffs become an increasing risk, the strength in the current assessment is an immediate plus for the economy.