Consumer sentiment rebounds as gas prices ease, Michigan survey shows

Consumer sentiment recovered in June as gasoline prices eased, lifting the University of Michigan’s preliminary index to 48.9 from 44.8 in May. The survey, based on interviews completed from May 19 through June 8, showed a broad improvement across age, education and political party, with especially strong gains among lower-income consumers whose budgets are more exposed to fuel costs.

Joanne Hsu, who directs the University of Michigan Surveys of Consumers, said the rebound reflected early-month relief at the pump after a sharp run-up in energy costs. The backdrop was a jump in gasoline prices tied to the Middle East conflict and fears around the Strait of Hormuz, followed by a pullback in early June. The June reading broke a three-month slide and followed an all-time low in May, but the mood remained fragile rather than buoyant.

The index was still 13% below January 2026 and 19% below June 2025, leaving sentiment well under the levels seen in 2024. The current economic conditions gauge rose to 48.4, while the index of consumer expectations climbed to 49.3, suggesting households felt somewhat less battered in the near term even as they stayed cautious about the broader outlook. Consumers remained focused on everyday costs and continued to worry that inflation could stay sticky.

That caution showed up in inflation expectations, too. Year-ahead expectations eased to 4.6% in June from 4.8% in May, while long-run expectations fell to 3.4% from 3.9%. Even after the decline, the long-run reading remained above the 2.8% to 3.2% range seen in 2024, a sign that many households still do not see price pressures fully under control.

The improvement in mood also came against a still-heavy national backdrop. The Conference Board’s May consumer confidence index slipped to 93.1 from 93.8 in April, with its survey period running from May 1 to May 19 and capturing the same wave of price anxiety tied to the Middle East conflict. Gas prices had eased from the May spike, but the June data suggested that consumers were still catching their breath rather than declaring victory.