June’s University of Michigan index shows a rebound from May’s record low but remains near historic lows amid persistent inflation concerns.
The University of Michigan’s Consumer Sentiment Index climbed to 49.5 in June, up from May’s record low of 44.8, driven by lower gasoline prices. The reading fell short of economists’ forecast of 50.0 and remains the second-lowest since the 1970s.
The rebound follows three consecutive months of declines, with gains across income groups and political affiliations. The Index of Consumer Expectations rose 15% to 50.7, while the Current Economic Conditions Index increased to 47.7 from 45.8 in May. Sentiment remains 13% below pre-Iran conflict levels and nearly 20% lower than a year ago.
Despite the improvement, over half of respondents cited high prices as a key concern, with inflation fears weighing on household finances. The survey director noted that falling gas prices provided limited relief against broader cost-of-living pressures.