The University of Michigan Consumer Sentiment Index was revised up to 49.5 in June 2026 from a preliminary reading of 48.9, though it remained slightly below market expectations of 50. Sentiment nevertheless improved from 44.8 in May—its lowest level on record—helped in part by easing gasoline prices.
The expectations index was revised higher to 50.7, the strongest reading in three months, compared with 49.3 in the preliminary estimate, as consumers’ concerns about the long-term effects of the Iran conflict appear to be subsiding. In contrast, the current conditions index was revised down to 47.7 from 48.4, though it was still above May’s 45.8.
The cost of living remains a key concern for households. Year-ahead inflation expectations edged down to a still-elevated 4.6% from 4.8% in May, remaining well above the 3.4% recorded in February, before the Iran conflict began. Long-run inflation expectations declined more than anticipated, to 3.3% from 3.4% in the preliminary reading and 3.9% in May.
