Gasoline prices falling ease inflation pressure, US consumer confidence index rose to 49.5 in June, still at historically low levels.

With the slowdown in gasoline prices easing some household expenditure pressure, American consumer confidence improved in June. However, due to overall high inflation, consumer sentiment remains close to historic lows, and the pressure of living costs is still the main concern for American households. Data released by the University of Michigan on Friday showed that the final consumer confidence index for the United States in June rose to 49.5, higher than the record low of 44.8 in May and an improvement from the preliminary reading. However, the index is still the second lowest level since data has been available in the 1970s, indicating that while consumer sentiment has improved somewhat, it still remains very low overall. In terms of inflation expectations, consumers expect prices to rise by 4.6% in the next year, lower than 4.8% in May. Long-term inflation expectations for the next 5 to 10 years have also dropped to 3.3%, reversing the significant increase from last month. The recent decline in gasoline prices has been an important factor in boosting consumer confidence. Over the past few weeks, the average price of gasoline in the United States has dropped by over 60 cents per gallon, helping to alleviate household fuel expenditure pressure. The report shows that consumer confidence has improved among different income groups and political orientations. Joanne Hsu, director of the University of Michigan Consumer Survey, stated that living costs remain the top concern for consumers. "The cost of living is still the biggest concern for consumers," Hsu said. "More than half of consumers mentioned that high prices are dragging down their personal financial situation." Despite the drop in gasoline prices, overall inflation in the United States remains at a high level in the past three years, and oil prices are gradually returning to pre-war levels. This means that American household budgets are still under pressure. The data shows that the index measuring the current economic situation at the University of Michigan rose in June, but still remains close to historic lows. Consumer evaluations of their own financial situation improved compared to May, but still remain near the lowest level since 2009. Nevertheless, American household demand is showing some resilience. Previously released data showed that inflation-adjusted US consumer spending accelerated in May, indicating that household consumption has not weakened significantly. Looking ahead, consumers' outlook on their future financial situation and the economic prospects in the coming years have also improved. The University of Michigan's Consumer Expectations Index rose to a three-month high. Hsu said that the related data indicates that consumers believe the impact of the Iran war on the economy may mainly focus on the short term. Recently, after the United States reached a temporary agreement with Iran, shipping in the Strait of Hormuz has increased, improving global oil supply and driving oil prices down. Despite an attack on a container ship on Thursday, shipping in the relevant areas continues. However, analysts point out that consumers may still face more pressure from rising prices for goods in the coming months. The previous impacts of increased energy, transportation, and raw material costs may gradually transmit to the end consumer prices. The report also shows that consumers' assessment of conditions for durable goods purchases remains low, reflecting the continued suppression of big-ticket consumption due to high prices and high interest rates. The survey covered the period from May 19 to June 22. Overall, the short-term improvement in American consumer sentiment due to the drop in gasoline prices is fragile, with consumer confidence still fragile against the backdrop of high inflation and unresolved pressures of living costs.