According to the latest data released by the University of Michigan, U.S. consumer sentiment has declined for the third consecutive month in June. The consumer sentiment index fell to 65.6 this month from 69.1 in May, reflecting a growing pessimism among Americans about their personal finances and concerns about ongoing inflation.
While the current reading is approximately 30% higher than the low point recorded in June 2022 when inflation surged to a four-decade high, it still remains below the levels typically associated with a robust and healthy economy. The persistent gloomy outlook among consumers has been a prevailing trend since the onset of the pandemic, exacerbated by the sharp rise in inflation that began in 2021.
Consumer sentiment plays a vital role in driving economic growth, as consumer spending is a key component of the economy. The negative sentiment regarding the state of the economy is also having implications for President Joe Biden's reelection prospects, as public perception of economic conditions often influences political outcomes.
