The University of Michigan released data on June 12 showing the Consumer Sentiment Index increased to 48.9 in June 2026 from 44.8 in May, reflecting a 9.2% improvement as gasoline prices fell from about $4.50 per gallon in mid-May to $4.10 in early June [1, 2, 3, 4]. Despite the rise, the index remains well below the 60.7 level recorded in June 2025 and near its lowest readings since the 1970s [1, 4].
Consumer optimism rose among all income groups, with lower-income households showing particularly strong gains, as gasoline represents a larger share of their expenses [1, 3, 4]. The Current Economic Conditions Index improved to 48.4 in June from 45.8 in May but stays far below last year's 64.8 [2, 3, 4]. Similarly, the Consumer Expectations Index climbed from 44.1 to 49.3 over the month [2, 3, 4].
Year-ahead inflation expectations edged down slightly, from 4.8% in May to 4.6% in June but remain elevated compared to earlier years [2, 3, 4]. Joanne Hsu, director of the University of Michigan Surveys of Consumers, said, "Views of the economy are still relatively dour. Consumers feel burdened by the recent escalation in inflation and worry that higher inflation could remain stubborn going forward" [1].
Hsu noted the relief brought by lower gasoline prices: "Sentiment rose by about four index points, or 9%, as consumers experienced some relief from the early-month decline in gasoline prices" [3]. Yet she also warned, "Despite consumers getting some breathing room, high gasoline prices remain a focal point of concern and continue to drag down their economic outlook" [4].
The survey data were collected from May 19 through June 8, capturing consumer views during the period when gasoline prices eased [4]. The University of Michigan is scheduled to release the next monthly consumer sentiment report in mid-July.
