Consumer Sentiment Increases for First Time in Six Months

Consumer sentiment rebounded in June, increasing for the first time in six months. The Michigan Consumer Sentiment Index rose 16.3% (8.5 points) to 60.7 this month, marking the largest monthly increase in over 30 years. This is the index's highest level since February but still reflects historically low levels of optimism. Consumer sentiment has fallen by 11.0% (7.5 points) compared to a year ago.

The Michigan Consumer Sentiment Index is a monthly survey of consumer confidence levels in the U.S. with regards to the economy, personal finances, business conditions, and buying conditions, conducted by the University of Michigan. There are two reports released each month; a preliminary report released mid-month and a final report released at the end of the month.

Joanne Hsu, the director of surveys, made the following comments:

Consumer sentiment surged 16% from May in its first increase in six months—confirming the mid-month reading—but remains well below the post-election bounce seen in December 2024. The improvement was broadbased across numerous facets of the economy, with expectations for personal finances and business conditions climbing about 20% or more. Despite June’s gains, however, sentiment remains about 18% below December 2024, right after the election; consumer views are still broadly consistent with an economic slowdown and an increase in inflation to come. Consumers continue to be concerned about the potential impact of tariffs, but at this time they do not appear to be connecting developments in the Middle East with the economy.