Consumer sentiment for June is deteriorating, according to the University of Michigan’s monthly consumer survey, with the index at 50.2, the lowest on record, a report from Seeking Alpha says.
“Consumer ratings of their personal financial situation have deteriorated by about 20%,” said Consumer Director of Surveys Joanne Hsu. “Forty-six percent of consumers attributed their negative views to inflation, up from 38% in May; this share has only been exceeded once since 1981, during the Great Recession.
Opinions on current conditions sit at 46.8 and inflation is expected to rise to 5.4%, an increase from where it was before.
The report also notes that consumers have a gloomy view of gasoline prices, expecting them to rise an average of 25 cents per gallon within a year.
That number would be double the May estimate and the second-highest figure since 2015.
See also: Gas high – but spirits higher – as summer travel kicks off
Despite this, the recent start of summer, as well as Memorial Day weekend, still saw people in high spirits, PYMNTS wrote.
AAA released its annual weekend travel forecast, estimating that 39.2 million people would travel 50 miles or more from home for a vacation getaway, representing an 8.3% increase from 2021 The figures were nearly in line with 2017 figures. Air travel is expected to rise 25% from last year, which was the second biggest jump since 2017.
According to AAA Travel Senior Vice President Paula Twidale, the holidays are “always a good predictor of what’s to come for summer travel. Based on our projections, summer travel isn’t just heating up, it’s going to be on fire.
According to Arrivalist, a location-based platform, rising gas prices were a big factor in travel planning, although increases in airfares prompted people to drive more instead of flying.
Trends in car trips included more overnight stays, fewer day trips and more car trips in the 250+ mile range, as well as more mid-week trips.