Jun 13, 2025 - Business

Consumer sentiment swings sharply higher in June

Courtenay Brown

Worker at cash rep of a Gap store — A worker inside a Gap store in New York earlier this month. Photo: Adam Gray/Bloomberg via Getty Images

Consumer sentiment rebounded in early June as tariff anxiety subsided, according to preliminary results from the University of Michigan.

Why it matters: It was the first improvement in six months, with a more upbeat economic outlook evident across all demographics and political groups.

What they're saying: "Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed," Joanne Hsu, director of the survey at the University of Michigan, said in a press release.

Hsu added that "consumers still perceive wide-ranging downside risks to the economy."

By the numbers: The index of consumer sentiment rose 16% this month to 60.5, while consumers upgraded expectations for short- and long-term business conditions.

Year-ahead inflation expectations plunged to 5.1%, down 1.5 percentage point from May — the lowest in three months.
"Consumers' fears about the potential impact of tariffs on future inflation have softened somewhat in June," Hsu said.
But inflation expectations remain notably higher than the end of last year, "reflecting widespread beliefs that trade policy may still contribute to an increase in inflation in the year ahead."

The bottom line: By the university's measure, consumer sentiment is still roughly 20% below President Trump's post-election bump at the end of last year.

Still, the survey is the latest indication that as tariff drama recedes, so do concerns about the broader economy among businesses and consumers.

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Consumer sentiment swings sharply higher in June

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