Consumer sentiment rose in June, according to a report released by the Survey of Consumers from the University of Michigan.
“Consumer sentiment confirmed its early-month reading, rising about 10% above May as gas prices moderated,” stated Surveys of Consumers Director Joanne Hsu.
“Increases were seen across income, wealth, and political affiliation. Expected business conditions over the next five years surged 16% as consumers’ worries over long-term consequences of the Iran conflict appear to be easing. Still, sentiment remains in unfavorable territory at 13% below the February 2026 reading prior to the start of the Iran conflict, and nearly 20% less than a year ago. The cost of living remains at the forefront of consumers’ minds; for the third straight month, over half of consumers spontaneously mentioned that high prices are weighing down their personal finances.”
Hsu added that year-ahead inflation expectations dipped to 4.6% this month. Long-run inflation expectations fell back from 3.9% last month to 3.3% in June, remaining a bit higher than the 2.8% to 3.2% range seen in 2024.
