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Updated: Preliminary UoM/Reuters Consumer Sentiment Falls To 81.2 In June

By Kitco News
Friday June 13, 2014 9:55 AM

Editor's Note: The article was updated to include comments from TD Securities.

(Kitco News) - U.S. consumers were pessimistic at the start of the June, continuing last month’s trend, according to the Thomson Reuters/University of Michigan preliminary consumer sentiment index for June, released Friday.

The overall sentiment reading was 81.2 in June, down from May’s final reading of 81.9. According to consensus estimates, economists had expected to see a reading between 82.9 and 83.2.

Looking at some of the components of the report, the current conditions index rose to 95.4, from the previous reading of 94.5. Economists were expecting to see the index rise to 95.7. Inflation expectations dropped to 3.0%, compared to the previous reading of 3.3%.

Gennadiy Goldberg, U.S. strategist at TD Securities, noted that the disappointing consumer sentiment report was the result of a drop in future expectations, which fell to 72.2 from last May’s reading of 73.7.

Despite the underwhelming results, he added that the bank is still optimistic that consumer spending will return in the second half of the year and contribute to higher economic growth.

“We continue to believe that while a rebound in these indicators has proven relatively stubborn, continued improvement in labor market conditions and the ongoing wealth effect from rising equities and home prices should continue to make consumers more comfortable in purchasing big-ticket items over the coming months,” he said.

By Neils Christensen of Kitco News; nchristensen@kitco.com



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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