US consumer confidence falls to record low

Surging US inflation has eroded consumer confidence, sending a closely-watched measure of how Americans feel about the economy to a record low, according to a survey released Friday.

The University of Michigan's consumer sentiment index fell to 50 in June, the lowest in the 45-year history of the survey, a more than eight-point drop from May and more than 41 per cent below last year's level.

Strong consumer demand has undergirded the robust recovery in the world's largest economy from the Covid-19 downturn, but families are now feeling squeezed by painful price increases for housing, gasoline and food, worsened by the fallout from the Russian invasion of Ukraine.