U.S. consumer sentiment rises in June as gas prices ease

Home Depot workers are likely to see a familiar mix on the sales floor: customers who feel a little less squeezed than they did in May, but still hesitate when the basket gets expensive. The University of Michigan’s consumer sentiment index rose to 48.9 in early June from 44.8 the month before, a gain of about 4 points, or 9 percent, helped by easing gasoline prices after a run-up to four-year highs.

That matters in the aisles because the improvement was broad, but not carefree. Joanne Hsu, director of the Surveys of Consumers, said the June gain was spread across age, education and political groups, yet people remained focused on kitchen-table issues. Lower-income households saw a particularly strong bump in sentiment because fuel costs take a larger share of their budgets, but the university said assessments and expectations of personal finances and business conditions still looked relatively dour.

For associates, that is a sign to expect more comparison shopping, more questions about durability, and more customers stretching purchases over time. A shopper may still want to finish a bathroom, refresh a deck or replace a fixture, but the decision is likelier to be framed around value, timing and whether a project can wait another month. That puts a premium on product knowledge, plain-language explanations of tradeoffs and a steady approach at the register and on the floor, especially when shoppers are balancing home repairs against a tight monthly budget.

The Home Depot has already been signaling that pressure in its own numbers. In its first quarter of fiscal 2026, the company reported sales of $41.8 billion, up 4.8 percent from a year earlier, with comparable sales up 0.6 percent overall and 0.4 percent in the U.S. Net earnings were $3.3 billion, or $3.30 per diluted share, and the company reaffirmed its fiscal 2026 guidance.

Even with that growth, Home Depot has said customers were postponing large remodeling projects as they dealt with inflation, high mortgage rates, housing affordability pressures and broader economic uncertainty. CFO Richard McPhail has said the average consumer was feeling pressure from rising fuel costs, a point that fits June’s sentiment report: some relief at the pump can soften the blow, but it does not erase it. Home Depot’s second-half outlook still hinges more on normal storm activity than on a full recovery in consumer demand, which means stores are likely to keep seeing cautious shoppers, smaller tickets and a sharper eye for value.