University of Michigan Survey Signals Waning Consumer Confidence

The monthly Thomson Reuters/University of Michigan Surveys of Consumers gauges the level of confidence American consumers have. The survey's Index of Consumer Expectations is an official component of the US Index of Leading Economic Indicators. The reading is compiled from a survey of around 500 consumers. The survey is important because it is often seen as an indicator of consumer spending, which totals about two-thirds of US GDP. The University of Michigan Consumer Sentiment Survey for June came in at 74.1, lower than the May reading of 79.3, which was also less than analysts' estimates of 77.5. "Income losses were reported by nearly one-third of all households in early June and the news reaching consumers about job prospects turned negative for the first time since late 2011," said Michigan's Richard Curtin. "In addition, a small but rising number of consumers reported their concerns about the fallout from Europe, the most that mentioned the potential domestic impact from an international crisis since the Asian flu in 1998," he continued. After the 9:55 am ET release, US equity markets saw a small move lower amid the worse-than-expected reading.