Consumer spending is not likely to rebound any time soon, according to a Thomson Reuters/University of Michigan survey released July 1.

Despite waning concern about volatile gas prices, the consumer sentiment index for June fell to 71.5 from 74.3 in May. This shows a consumer base more sour than expected about the economy's prospects. Bloomberg economists had predicted a June reading of 72, while Reuters economists had forecast it would be 71.9.

Short-term sentiment was rosier than long-term, with the index of current economic conditions actually rising very slightly since May, from 81.9 to 82, and the one-year inflation outlook also improving, from 4.1 to 3.8 percent. However, long-term inflation expectations went up to 3 percent from 2.9, and consumer expectations dropped from 69.5 to 64.8.

Survey director Richard Curtin said consumer spending cannot be counted on to drive an economic recovery.

Contrary to the gloomy outlook revealed by this survey, a recent Valpak study found consumers are poised to increase spending in certain areas, notably home improvement, during the summer.

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