FX.co ★ US Consumer Sentiment Rebounds in Early June

The University of Michigan’s Consumer Sentiment Index rose to 48.9 in early June 2026, up from May’s record low of 44.8 and exceeding market expectations of 46. This modest rebound largely reflects some relief from early-month declines in gasoline prices, with sentiment improving across age, education, and political groups. The increase was especially pronounced among lower-income consumers, for whom gasoline accounts for a bigger share of household spending.

Assessments of both personal finances and overall business conditions improved in June. Nonetheless, despite these early gains, overall economic sentiment remains subdued—13% below its January 2026 level and 19% lower than a year ago—as households continue to grapple with day-to-day financial pressures.

Inflation remains a central concern. Year-ahead inflation expectations eased slightly to 4.6%, down from 4.8% in May, while long-run expectations declined to 3.4% from 3.9%. Even with these declines, consumers remain worried that inflation will stay persistently high, particularly over the short term.