US consumer confidence dips in June, University of Michigan says

US consumer sentiment dipped by a little bit more than economists had been expecting in June, but the data continued to point to a moderate rate of growth in consumer spending, according to the results of one of the most widely followed surveys.

The University of Michigan's consumer confidence index dropped from a reading of 94.7 at the end of May to 93.5 at the end of June, which was also below a preliminary print of 94.3.

A sub-index tracking consumers' expectations was the main source of weakness, registering a decline from 84.9 to 82.4, while the sub-index linked to consumers' evaluation of the current situation came in at 110.8, down from 109.9 in the month before.

"Consumers were a bit less optimistic in late June due to rising concerns about prospects for the national economy. While no recession is anticipated, consumers increasingly expect a slower pace of economic growth in the year ahead.

"Importantly, the persistent strength in personal finances will keep the level of consumer spending at relatively high levels and continue to support an uninterrupted economic expansion," said Richard Curtin, the UofM's Surveys of Consumers's chief economist.