June 15, 2020
Consumer sentiment posted its second monthly gain in early June, according to the University of Michigan’s monthly survey, which is used by the St. Louis Federal Reserve as an economic barometer. The 6.6-point gain to an index of 78.9 was paced by gains in the outlook for personal finances and more favorable prospects for the national economy due to the reopening of the economy.
The turnaround is largely due to renewed gains in employment, according to the university. More consumers expect declines in the jobless rate than at any other time in the monthly survey’s history.
However, despite the expected economic gains, “few consumers anticipate the reestablishment of favorable economic conditions anytime soon,” the university reported. “Bad times financially in the economy as a whole during the year ahead were still expected by two-thirds of all consumers, and a renewed downturn was anticipated by nearly half over the longer term.”
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