Michigan Confidence Survey

The final University of Michigan Confidence Survey for June strengthened from the preliminary estimate, but still sits at a ten month low of 85.3 (preliminary 83.7, May 88.3). It is believed that falling home prices and rising mortgage rates, combined with high gas prices are dampening optimism, and raises concerns that consumers will reduce spending further.

Current conditions rose to 101.9, down from 105.1 in May. Expectations for the next six month fell to 74.7 in June versus 77.6 in May.

Inflation expectations remain elevated. The one year outlook is at 3.4%, at the highest level for this year, and up from 2.9% in December. The five year inflation expectation is at 2.9% in June, versus 3.1% in May.