Consumer Confidence Slumps in June

The University of Michigan consumer confidence survey unexpectedly tumbled to a ten month low in June of 83.7 (consensus 87.8) from 88.3 in May. Current conditions fell a little harder than future expectations, with a decline of 4.9 versus 4.6.

Inflation expectations rose , with one year expectations rising to 3.5% from 3.3% last month, representing the highest 1-yr inflation expectation level since last August. Expectations for inflation over the next five years fell to 3% from 3.1% in May.

The gloomier outlook is probably representing concerns about rising fuel prices and falling house prices, combined with recent reports of anemic GDP growth in the first quarter.