June consumer sentiment falls to lowest levels since November

The latest consumer sentiment data has painted a less optimistic picture, with the University of Michigan’s Index of Consumer Sentiment June reading falling short of expectations.

Plunging to the lowest level since November 2023, consumer sentiment came in at 65.6, whereas analysts had estimated 72.0. This reading marks a notable decline from May's figure of 69.1.

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This post was written by Angel Smith

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All right.

First, we want to get to some breaking news that we have out on consumer sentiment coming in below expectations falling to 65.6 versus the prior month reading of 69.1.

Putting this into context here for you.

It's actually the lowest consumer consumer sentiment index rating that we have seen since November and digging into this report just a bit, the expected change in median prices during the next year, that was actually unchanged at 3.3%.

The expected change in median prices during the next 5 to 10 years that actually rose to 3.1%.

So some concerns about rising prices, inflation uh clearly coming through within this print.

But again, uh Consumer sentiment, University of Michigan, the prelim reading here of the survey for June falling to 65.6 here matty versus 69 point one last month for the Yeah, it's really interesting to see this kind of softness because we're seeing that wage growth is continuing to keep pace with inflation and that is one of the key drivers of consumer sentiment.

So interesting to see this.

Having said that though, when you think about the falling consumer sentiment and what the consumer feeling about the economy.

You have to wonder what so many of our guests have been saying Mohammed and making the great points about this yesterday, this idea of a case recovery and when part of the economy is starting to feel really negatively about it could weigh on the broader picture.

And in here, we're starting to see some evidence of that soft, softening view moving forward.

And I also think this just points back to the fact that obviously consumer is such an important part of the economy, being profit of the economy.

We talk about the spending.

We talk about the fact that the consumer has remained extremely resilient, much more resilient than many forecasters had anticipated up until this point.

So any sort of softening within that, I think also begs the question, maybe if whether or not it signals broader weakening here down the road or really maybe a change literally in sentiment amongst consumers at this point.

Given some of the latest data points that we had seen here over the last several weeks.

Yeah, just taking a look.

We are seeing a little bit more movement to the downside in the 10 years.

Just see some more of that in the bond space.

We're also continuing to see the movement to the downside in the broader market, but that was already happening prior to this data this morning.