US consumer sentiment soured in early June suggesting persistent unemployment is clouding Americans' expectations for the economy's future.
Despite an upbeat tone in the stock market, the University of Michigan's closely watched gauge of consumer confidence slipped to 87.2 in June from May's 92.1. The report caught Wall Street forecasters off guard - they had pegged the figure at 93.4, according to a Reuters poll.
More worrying, the survey's gauge of consumers' outlook on the future of the economy slumped to 84.2 from 91.4 in May, suggesting Americans are having a hard time sustaining the optimism that followed the end of the Iraq war.
Current views on the economy deteriorated slightly, with that component easing to 92.0 in June from 93.2 in May. Equity markets were not happy with the news, with major indexes starting the day off around 0.3 per cent.