WASHINGTON — U.S. consumer sentiment improved modestly in early June as gasoline prices eased from recent highs, according to preliminary survey data released on Friday, though household concerns about inflation and the broader economic outlook remained elevated.
The University of Michigan's preliminary Index of Consumer Sentiment rose to 48.9 in June from 44.8 in May, which had marked a record low for the survey, according to data released by the university. Survey officials said the improvement was linked in part to declining fuel prices during the first weeks of June.
“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 Surveys of Consumers, said in a statement accompanying the release.
The survey found that the improvement was broad-based across age groups, education levels and political affiliations. Lower-income households recorded some of the strongest gains in sentiment, a trend researchers attributed to the larger share of household budgets devoted to fuel expenses.
According to AAA data cited by several media outlets, average gasoline prices declined by nearly 10% over the past month, providing some relief after a period of rising energy costs. Fuel prices, however, remained above levels seen a year earlier.
Despite the improvement, consumer confidence remained historically weak. The June reading was still well below levels recorded a year earlier, and respondents continued to express concerns about inflation, household finances and future price increases. The survey indicated that expectations for inflation over the coming year eased slightly but remained elevated.
Economists said sentiment has been affected in recent months by higher living costs and uncertainty surrounding energy markets. While labor market conditions have remained relatively stable, consumers have continued to cite the cost of everyday goods and services as a major concern.
Financial markets reacted positively to the survey results on Friday, with major U.S. stock indexes advancing after the data was released. Investors viewed the report as a sign that consumers were receiving some relief from energy costs, although inflation concerns persisted.
The University of Michigan said the June figures are preliminary and based on interviews conducted through early June. A final reading for the month is scheduled for release later in June, providing a fuller picture of consumer attitudes as households continue to assess inflation, fuel costs and broader economic conditions.
