US consumer confidence dips in June

Consumer sentiment Stateside registered a slight dip in June, which economists said might herald a recovery in hiring by firms, but inflation expectations dropped, which might give some observers pause for concern.

The University of Michigan's consumer confidence index for the start of June drifted lower from 94.7 to 94.3.

Economists had been expecting a reading of 94.0.

"The stability in consumer sentiment supports the view that the slowdown in May job growth was not a reflection of a broad-based downturn across the economy. Should job growth bounce back, as we expect it will, sentiment and spending should be key beneficiaries," Barclays's Jesse Hurwitz said in a research note sent to clients.

Significantly, the index tracking consumers' inflation expectations 5 to 10 years out dropped from 2.5% to 2.3% - the lowest on record since the start of the survey in 1979.

"Chair Yellen admitted that “some measures of longer-term inflation expectations have moved a little lower over the past couple of years” in her speech earlier this week; today’s move lower may exacerbate those concerns," Hurwitz explained.

A sub-index linked to their assessment of current conditions set a new cycle-high at 111.7, rising from the end-May level of 109.9.

In parallel, a gauge of consumers' expectations slipped from 84.9 to 83.2.

To take note of, consumers rated both their current financial situation - due to wage gains - and prospects for gains in real incomes at their most favourable since the 2007 peak.

However, "consumers do not think the economy is as strong as it was last year nor do they anticipate the economy will enjoy the same financial health in the year ahead as they anticipated a year ago, said Surveys of Consumers chief economist Richard Curtin

"A sustained reduction in the pace of job creation could prompt consumers to hold down spending to increase their precautionary savings. Overall, the data still indicate that real consumer expenditures can be expected to rise by 2.5% in 2016 and 2.7% in 2017."