Consumer sentiment in the U.S. improved by much less than initially estimated in the month of June, the University of Michigan revealed in a report on Friday.
The report said the consumer sentiment index for June was downwardly revised to 98.2 from the preliminary reading of 99.3.
The index for June is still slightly above the final May reading of 98.0, although economists had expected a much more modest downward revision to 99.2.
Surveys of Consumers chief economist Richard Curtin said the downward revision was largely due to concerns about the potential impact of tariffs on the domestic economy.
“The potential impact of tariffs on the domestic economy was spontaneously cited by one-in-four consumers, with most expecting a negative impact on the domestic economy,” Curtin said.
“The primary concerns were a downshift in the future pace of economic growth and an uptick in inflation,” he added. “A longstanding belief of consumers is that trade with other countries results in a broader range of available goods at lower prices.”
The report said the current economic conditions index jumped to 116.5 in June from 111.8 in May, while the index of consumer expectations dropped to 86.3 from 89.1.
On the inflation front, one-year inflation expectations rose to 3.0 percent in June from 2.8 percent in May and five-year inflation inched up to 2.6 percent from 2.5 percent.