US consumer sentiment rebounds from record low, but remains below average.


Consumer sentiment in the United States improved much more than expected this month, according to the University of Michigan, rebounding from a record-low level reached in May.

Source: Sharecast

The index of consumer sentiment rose to 48.9 in June from 44.8 the month before, comfortably ahead of the 46 consensus estimate.

The university's consumer surveys director Joanne Hsu attributed the improvement to the "relief" caused by an easing of gasoline prices, though the headline reading was still 19.4% lower than it was a year ago.

The current economic conditions sub-index rose to 48.4 from 45.8, while the consumer expectations gauge increased to 49.3 from 44.1.

"Lower-income consumers exhibited a particularly strong sentiment increase, consistent with the fact that gasoline comprises a larger share of their budgets. Overall, assessments and expectations of personal finances and business conditions all rose this month," Hsu said.

However, she pointed out that views of the economy were still "relatively dour".

"Sentiment is currently 13% below January 2026 and 19% below a year ago, as consumers remain focused on kitchen table issues. They feel burdened by the recent escalation in inflation and worry that higher inflation could remain stubborn going forward, particularly in the short run."

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