U.S. Consumer Sentiment Sees First Rise in Six Months

U.S. consumer sentiment rose in June 2025 for the first time in six months, as the University of Michigan's Consumer Sentiment Index increased 16.3% to 60.7 from May's 52.2. The improvement was broad-based, with both current conditions and expectations indices posting gains. Despite this rebound, sentiment remains about 18% below the post-election peak in December 2024 and 11% lower than the same period a year ago. Inflation expectations moderated, with the year-ahead outlook dropping to 5.0% and long-run expectations to 4.0%, their lowest in several months, though still above late 2024 levels. Concerns over the inflationary impact of tariffs have lessened, and recent Middle East instability has not been linked by consumers to the U.S. economic outlook. However, caution persists among consumers, consistent with ongoing economic uncertainty.