ANN ARBOR — The University of Michigan’s preliminary Consumer Sentiment Index rose to 48.9 in early June, up from a record low of 44.8 in May, according to survey results released on June 12.
The modest increase, which exceeded economists’ expectations of around 46, reflected some relief from easing gasoline prices early in the month, the university’s Surveys of Consumers reported. Improvements appeared across age, education and political groups, with particularly strong gains among lower-income consumers for whom fuel costs represent a larger budget share.
Despite the uptick, overall sentiment remained near historically low levels, about 13 percent below January 2026 and 19 percent below June 2025 readings. Consumers continued to focus on everyday financial pressures amid lingering effects from global energy market volatility.
The Current Economic Conditions component and Expectations Index both advanced from May levels, while year-ahead inflation expectations eased to 4.6 percent from 4.8 percent. Long-run inflation expectations fell to 3.4 percent from 3.9 percent, though concerns about persistently high prices remained prominent.
Survey director Joanne Hsu noted the widespread nature of the improvement. Assessments of personal finances and broader business conditions also showed gains compared to the prior month.
The survey results come as broader economic indicators reflect ongoing challenges, including impacts from international developments on energy costs. The University of Michigan conducts the monthly Surveys of Consumers to gauge public attitudes on personal finances, business conditions and buying intentions.
"Even with June’s early gains, however, views of the economy are still relatively dour," the report stated. Sentiment has shown volatility in recent months amid fluctuating energy prices and other pressures.
Economists monitor the index closely for signals on consumer spending, which drives a substantial portion of U.S. economic activity. The preliminary June figures are based on interviews conducted in the first half of the month.
The final June reading is scheduled for release on June 26. Additional data from future surveys will provide further clarity on whether the recent improvement sustains or reverses.
