NEW YORK – U.S. consumer sentiment suffered its biggest one-month drop since the Sept. 11 attacks in June as worries of a worsening economy, battered stock markets and news of corporate shenanigans all weighed on Americans.
The University of Michigan's final June consumer sentiment index fell to 92.4 in June from 96.9 in May but up from a preliminary reading of 90.8 released two weeks ago, market sources said on Friday. Economists expected the index to be unchanged from its mid-month reading.
While consumer confidence has stumbled in June, evidence from auto showrooms and retail stores this month suggests American spending is continuing to fuel the economy's sluggish recovery from recession. Consumer spending makes up two-thirds of the U.S. economy.
The final current conditions index, which tracks consumers' views about their present financial situation, fell to 99.5 in June from 103.5 in May, up from a preliminary reading of 97.9. The expectations index, which measures attitudes about the 12 months ahead, fell to 87.9 in June from 92.7 in May. The preliminary reading was 86.2.
The University of Michigan consumer sentiment survey is based on telephone interviews with roughly 500 Americans across the country on personal finances and business and buying conditions.