Source: Sharecast
Similarly, inflation expectations "plummeted", but continued to point to inflation risks, the results of a closely followed survey showed.
The University of Michigan's consumer confidence index jumped from a reading of 52.2 in May to 60.7 for June (Preliminary: 60.5), led by an improvement in a gauge for consumer expectations from 47.9 to 58.1.
Commenting on the data, survey director Joanne Hsu said: "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."
Inflation expectations one year ahead meanwhile fell from 6.6% to 5.0% (Preliminary: 5.1%) and those for over the long-run from 4.2% to 4.0% (Preliminary: 4.1%).
"Consumers’ fears about the potential impact of tariffs on future inflation softened somewhat in June," Hsu added.
"Still, inflation expectations remain above readings seen throughout the second half of 2024, reflecting widespread beliefs that risks to inflation have not fully abated."