US consumer sentiment at 10-month low

US consumer sentiment dropped more than expected in June to its weakest in 10 months.

US consumer sentiment dropped more than expected in June to its weakest in 10 months.

The Reuters/University of Michigan Surveys of Consumers said the preliminary reading on the June consumer sentiment index showed a decline to 83.7 from 88.3 at the end of May.

The fall came as higher petrol prices dampened consumers' mood and pushed up their expectations of inflation in the near-term.

The decline was much sharper than forecast by economists, who had expected a median reading of 88.0.

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But the decline in consumer confidence in June was "hardly surprising", the Reuters/University of Michigan survey said, noting that US petrol prices have topped $3 per gallon for six straight weeks.