Preliminary results from the University of Michigan’s Surveys of Consumers show US consumer sentiment increases in early June after falling to a record low in May. Multiple outlets report the survey’s Index of Consumer Sentiment rises to 48.9 in June from 44.8 in May, representing about a 9% increase, or roughly four index points. The improvement marks the first rise in four months.
According to the University of Michigan director of the survey, Joanne Hsu, the gains are linked to easing gasoline prices, which may reduce household pressure and improve near-term attitudes. Sources also note that sentiment improves across demographic and political groups, including by age and education, and by political party.
Despite the uptick, Hsu says consumers still perceive significant risks ahead. The surveys therefore suggest a modest improvement in sentiment rather than a full reversal of earlier concerns.
