UM consumer sentiment index rises for first time in 6 months
The UM consumer sentiment has improved for the first time in six months.
The Current Index rose to 64.8 in June, up from 58.9 in May and below last June's 65.9; the Expectations Index rose to 58.1, up from 47.9 in May and below last June's 69.6.
Labor market expectations improved in June but remain considerably worse than at the beginning of the year. About 57 percent of consumers expect unemployment to rise in the year ahead, down from 66 percent in March but still much higher than the 40 percent seen in December 2024.
Expectations for consumers' own income growth improved modestly in June, but June readings were worse than six months ago. Expectations for personal finances soared 17 percent from near historic lows in May but were 17 percent below December 2024.
Beliefs about the anticipated effects of tariffs have shaped consumers' views of the economy this year. In June, about 59 percent of consumers provided unsolicited comments about tariffs, down from 66 percent in May but marking three consecutive months a majority of consumers did so.
The share of consumers expecting business conditions to worsen in the year ahead fell from 64 percent in May but stood high at 55 percent, compared with just 29 percent in November 2024.
"Consumers feel they have some breathing room given that the historically high tariffs announced earlier this year have not been sustained, and the worst-case scenarios for the economy have not come to fruition," said economist Joanne Hsu, director of the University of Michigan's Survey of Consumers. "However, consumers still worry that higher inflation and an economic slowdown are on the horizon, and they remain very cautious."
The Surveys of Consumers is a rotating panel survey based on a nationally representative sample that gives each household in the coterminous United States an equal probability of being selected. Interviews are conducted throughout the month by telephone.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
South Africa's unemployment rate rises to 33.2 pct in Q2
JOHANNESBURG, Aug. 12 (Xinhua) -- South Africa's official unemployment rate increased by 0.3 percentage points to 33.2 percent in the second quarter (Q2) of 2025, the national statistics agency said on Tuesday. The number of unemployed rose by 140,000 to 8.4 million in Q2, while the labor force expanded by 159,000 over the same period, according to the Quarterly Labor Force Survey released by Statistics South Africa in Pretoria, the country's administrative capital. Statistician General Risenga Maluleke noted that unemployment rose in six out of the country's nine provinces in Q2, with the graduate unemployment rate edging up to 12.2 percent from 11.7 percent in Q1. Sectors recording employment gains included trade, private households, and construction, while community and social services, agriculture, finance, transport, utilities, and manufacturing posted losses, Maluleke added. South African analyst Sandile Swana told Xinhua in a telephone interview that the country's employment is "constrained by gross fixed capital formation," highlighting the need to address infrastructure maintenance and expansion. "Tackling the backlog in infrastructure and maintenance is crucial. Investment in these areas delivers immediate economic returns," he said. Unemployment remains a pressing issue in South Africa. The trade department has warned that the United States' recent imposition of a 30-percent tariff on South African goods could cost more than 30,000 jobs.
The Star
2 hours ago
- The Star
Indonesia's tech firm adds 29.5 bln USD, 2 mln jobs to economy
JAKARTA, Aug. 12 (Xinhua) -- Indonesia's largest digital firm, PT GoTo Gojek Tokopedia (GoTo), generated 480.72 trillion rupiahs (29.5 billion U.S. dollars) in economic value in 2024 and created over 2.03 million jobs, a report showed Tuesday. The study by the Jakarta-based Prasasti Center for Policy Studies found GoTo's direct economic contribution reached 355.33 trillion rupiahs (21.8 billion dollars), with indirect impacts of 125.39 trillion rupiahs (7.7 billion dollars). The company's activities also helped cut the national poverty rate by 0.45 percentage points. "GoTo has delivered real social impact by creating jobs, increasing incomes, and expanding financial inclusion for MSMEs and informal workers," said research director Gundy Cahyadi. He called for stronger government policies and incentives to bolster local digital industries as part of an equitable and sustainable growth strategy. GoTo, the country's largest internet technology firm, offers services in mobility, delivery, payments, financial services, and merchant technology solutions.
The Star
2 hours ago
- The Star
China, Egypt launch poultry farming training program to empower rural Egyptian women
CAIRO, Aug. 12 (Xinhua) -- The Chinese Embassy in Egypt, together with local partners, has launched a poultry farming training program in Egypt's Menoufia Governorate to help rural women gain practical skills and boost household incomes. Organized in partnership with the Egyptian National Alliance for Civil Development Work and Chinese agricultural firm New Hope Liuhe Co., Ltd., the program shares Chinese agricultural expertise in the effective management of poultry farming cycles. Aya Abdeen, a technical manager and veterinary doctor at New Hope Egypt, said the training covers the essential aspects of the poultry rearing process, especially for Sasso chickens, from the day-old chick phase through to the point of sale in the market. During the launch ceremony on Monday, Chinese Ambassador to Egypt Liao Liqiang said the training program is "an innovative practice to support Egypt's poverty alleviation efforts and empower rural women, enhancing the mutual understanding between the Chinese and Egyptian peoples." Sabah Mohamed Abdel-Salam, a 47-year-old widow and one of the project's beneficiaries, said the project is "a great opportunity to earn income from home while caring for my family." "I believe it will help me raise poultry, increase their number, and support my children without leaving the house," she added.
