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Economic Report: Consumer sentiment hits new record low, UMich survey finds

The numbers: The University of Michigan’s gauge of consumer sentiment fell again to a final June reading of 50 from an initial reading of 50.2 earlier in the month and well below May’s level of 58.4

The June figure is the lowest reading on record, going back to the late 1970s.

Economists were expecting a reading of 50.2, according to a Wall Street Journal poll.

American’s expectations for overall inflation over the next year held steady at 5.3%, while expectations for inflation over five years ticked up to 3.1%.

Big picture: Rising prices for key consumer goods like gasoline continue to sour Americans’ economic outlook.

“Inflation continued to be of paramount concern to consumers; 47% of consumers blamed inflation for eroding their living standards, just one point shy of the all-time high last reached during the Great Recession,” wrote Joanne Hsu, director of the survey, in a statement.

“Consumers across income, age, education, geographic region, political affiliation, stockholding and homeownership status all posted large declines,” she added.

Key details: A gauge of consumer’s views of current conditions fell to 53.8 in June from 63.3 in May, while an indicator of expectations for the next six months declined to 47.5 from 55.2 in the previous month.

Market Reaction: U.S. stocks
DJIA,
+2.02%

SPX,
+2.35%

were trading higher Friday morning.

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