WASHINGTON — U.S. consumer confidence showed signs of improvement in June as gasoline prices eased from recent highs, providing some relief to households after months of pressure from elevated energy costs and inflation, according to preliminary survey data and market analysts.
The University of Michigan’s preliminary Index of Consumer Sentiment rose to 48.9 in early June from 44.8 in May, which had marked a record low in the survey’s history, the university reported on Friday. Survey officials said lower fuel prices were a key factor behind the improvement. Consumer sentiment remained below levels recorded a year earlier, however, reflecting continued concerns about inflation and household finances.
“This month, consumer sentiment ticked up about four index points, or 9%, with consumers experiencing some relief due to the early-month easing in gasoline prices,” Joanne Hsu, director of the University of Michigan’s Surveys of Consumers, said in a statement accompanying the report.
According to the survey, sentiment improved across age, education and political groups. Lower-income households recorded some of the strongest gains, a trend Hsu said was consistent with the larger share of household budgets that many lower-income consumers devote to fuel expenses.
Gasoline prices declined in recent weeks after a period of sharp increases linked to disruptions in global energy markets. Market data showed U.S. fuel prices retreating from levels reached during heightened tensions in the Middle East, while crude oil prices also moved lower following diplomatic developments involving the United States and Iran.
Economists said the decline in fuel costs helped reduce pressure on household budgets and contributed to slightly lower inflation expectations among consumers. The University of Michigan survey found that both short-term and long-term inflation expectations eased in June, although they remained above levels seen earlier in the year.
Despite the improvement, the survey indicated that consumers remain cautious about the broader economic outlook. Sentiment was still well below its level from June 2025, and respondents continued to cite inflation and the cost of living as major concerns. Analysts noted that household perceptions of economic conditions remain subdued even as some financial indicators have stabilized.
As of Monday, fuel prices continued to trend lower than their recent peaks, while consumer confidence readings showed modest improvement. Economists and policymakers were monitoring upcoming economic data to assess whether the gains in sentiment would be sustained in the coming months.
