Sentiment rises with debt ceiling resolution and slowing inflation

Consumer sentiment lifted 9% in June, reaching its highest level in four months, a sign of greater optimism as inflation eased and policymakers resolved the debt ceiling crisis. The upswing was observed for all demographic groups; the consensus view among consumers is that macroeconomic prospects improved this month, according U-M economist Joanne Hsu , director of the surveys. Sentiment is now 29% above the historic trough reached a year ago but remains low overall, as most consumers still expect difficult times in the economy over the next year. "Inflation continues to be the top economic factor influencing consumer attitudes, and the slowdown in inflation is welcome news. However, consumers still expect challenging times ahead, particularly since they expect any income growth will be outpaced by future price increases,” Hsu said. "The fight against inflation has far to go before consumers feel more settled about the economy. Economic outlook surges after debt ceiling crisis ends.