Consumer sentiment rose to 48.9 in early June, an increase of 4.1 points from May, driven by easing gasoline prices, according to the University of Michigan’s Surveys of Consumers. Even with the rebound, the index remains 13% below where it stood in January 2026 and 19.4% below its June 2025 reading.
Both the Current Economic Conditions Index and the Index of Consumer Expectations posted gains, climbing 5.7% and 11.8% on the month, respectively.
Inflation expectations continue to drag down overall sentiment. Year-ahead inflation expectations edged down from 4.8% in May to 4.6% in June, still well above the 3.4% reading recorded in February 2026. Long-run inflation expectations fell from 3.9% to 3.4%, though they continue to run higher than the 2.8% to 3.2% range seen throughout 2024.
“Consumers remain focused on kitchen table issues,” Surveys of Consumers Director Joanne Hsu said. “They feel burdened by the recent escalation in inflation and worry that higher inflation could remain stubborn going forward, particularly in the short run.”
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