US Consumer Sentiment Rebounds in June on Falling Gas Prices

(MENAFN) American consumer confidence edged higher in June as easing gasoline prices offered some financial breathing room to households, preliminary data released Friday by the University of Michigan showed.

The consumer sentiment index climbed 9.2 percent to 48.9 in June, recovering from a reading of 44.8 in May. Despite the monthly uptick, the figure remained 19.4 percent below the 60.7 level recorded in June 2025.

The current economic conditions index rose 5.7 percent month-on-month to 48.4, while the consumer expectations index advanced 11.8 percent to 49.3.

Surveys of Consumers Director Joanne Hsu said sentiment rose by roughly four index points, or 9 percent, as households felt some relief from the drop in gasoline prices seen earlier in the month.

The improvement was broad-based across age, education, and political lines, with lower-income consumers registering a particularly sharp rebound — reflecting the outsized share that fuel costs occupy in their household budgets, Hsu noted.

Despite the monthly recovery, the overall picture remains fragile. Sentiment still sat 13 percent below January 2026 levels and 19 percent lower than a year earlier, with households continuing to fixate on "kitchen-table issues," including persistent inflation pressures.

Consumers reported feeling weighed down by the recent acceleration in price growth and expressed ongoing concern that inflation could remain elevated, particularly in the near term, the survey found.

Year-ahead inflation expectations edged down to 4.6 percent in June from 4.8 percent in May, yet remained sharply above the 3.4 percent level recorded in February — prior to the outbreak of the Iran conflict.

Long-run inflation expectations retreated to 3.4 percent from 3.9 percent in May, though they continued to exceed the 2.8 to 3.2 percent range that prevailed throughout 2024.

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