Consumer confidence sees broad-based rise in June, University of Michigan says

Consumer confidence in the US perked up in June amid a broad-based improvement across all demographic groups and price expectations retreated sharply.

The University of Michigan's consumer confidence index rose from 59.2 points for May to 64.4 in June.

That was better than the preliminary result of 63.9.

Survey director Joanne Hsu highlighted how the economic outlook for the next 12 months soared by 28% versus May and by 11% for the long-run.

"Overall, this striking upswing reflects a recovery in attitudes generated by the early-month resolution of the debt ceiling crisis, along with more positive feelings over softening inflation," she said.

"Views of their own personal financial situation were unchanged, however, as persistent high prices and expenses continued to weigh on consumers."

Inflation expectations for the next 12 months dropped sharply, from 4.2% in May to 3.3% - the least since March 2021.

Long-run expectations for price gains ticked down by a tenth of a percentage point to reach 3.0%, but remained in the 2.9-3.1% range seen over most of the past 23 months.

"These expectations remained elevated relative to the 2.2-2.6% range seen in the two years pre-pandemic."