6/14/2019, 4:02 PM (Source: TeleTrader)
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Consumer morale cools in June in US

Results of a regular survey with consumers, conducted by the University of Michigan, showed confidence worsened after a rebound in May. The initial print for the headline index, published on Friday, landed at 97.9, dropping 2.1 points or just 0.3 from one year before. The subindex of current conditions rose by 2.5 points on the month and fell four points on an annual scale. The forward-looking component slumped 4.9 points to 88.6 but the reading was 2.3 points higher than 12 months before.

The inflation outlook weakened 0.3 percentage points to 2.6% for twelve months ahead and dropped 0.4 points to a record low 2.2% for the five-year horizon. Employment and economic growth expectations were lowered.

"The sole component of the sentiment index that improved in early June was buying plans for large household durables. That improvement, however, was due to consumers favoring tariff induced buy-in-advance price rationales," said Richard Curtin, head of consumer surveys, and attributed the worsening mostly to import tariffs on China's goods, but also the now suspended measures against Mexico.

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