US consumer sentiment rises in June on easing gasoline prices

US consumer sentiment improved in June as easing gasoline prices provided some relief to households, according to preliminary data from the University of Michigan on Friday.

The index of consumer sentiment rose 9.2% to 48.9 in June, up from 44.8 in May. However, the reading remained 19.4% below the 60.7 level recorded in June 2025.

The current economic conditions index increased 5.7% month-on-month to 48.4, while the consumer expectations index climbed 11.8% to 49.3.

Surveys of Consumers Director Joanne Hsu said sentiment rose by about four index points, or 9%, as consumers experienced some relief from the early-month decline in gasoline prices.

The improvement was broad-based across age, education, and political affiliation, while lower-income consumers posted a particularly strong increase, as gasoline accounts for a larger share of their budgets, Hsu said.

Despite the monthly gain, consumer views of the economy remained weak. Sentiment was still 13% below January 2026 and 19% lower than a year earlier, with households continuing to focus on “kitchen-table issues,” including inflation pressures.

The survey said consumers still feel burdened by the recent acceleration in inflation and remain concerned that price increases could stay elevated, particularly in the near term.

Year-ahead inflation expectations edged down to 4.6% in June from 4.8% in May but remained well above the 3.4% level recorded in February before the start of the Iran conflict.

Long-run inflation expectations fell to 3.4% from 3.9% in May, though they remained above the 2.8%-3.2% range seen throughout 2024.