The University of Michigan final June consumer sentiment index rose to 49.5
(preliminary 48.9), up about 10% from May, aided by a pullback in gas prices.
Confidence improved across income, wealth and political groups. Five-year
expectations for business conditions jumped 16%, suggesting some easing of
longer-run concerns about the Iran conflict. The index remains weak — about 13%
below February 2026 (pre-conflict) levels and nearly 20% below last year.
Cost-of-living remains the top concern: for a third month, a majority say high
prices are hurting finances. One-year inflation expectations fell to 4.6% from
4.8% in May but remain well above the February 2026 3.4% reading and above any
2024 print; five-year inflation expectations eased to 3.3% from 3.9%, slightly
above the 2024 2.8%-3.2% range.
