US Consumer Sentiment Rebounds Sharply in June

U.S. consumer sentiment rebounded sharply in June 2025, with the University of Michigan's index rising to 60.5 from 52.2 in May, marking the first increase in six months and the largest monthly jump in over a year. The improvement is attributed to easing inflation expectations and a temporary truce in President Trump's trade war with China, although elevated tariffs remain in place. Sentiment is still about 20% below December 2024 levels, and consumers now perceive significant downside risks to the economy. The rise was broad-based across political parties, with Republicans reporting more optimism than Democrats. Analysts caution that the rebound's sustainability is uncertain, particularly as recent geopolitical tensions have driven up oil prices and may impact future inflation. Overall, Americans are cautiously optimistic but the economic outlook remains fragile amid ongoing uncertainties.