FX.co ★ US Consumer Sentiment Rebounds in June

In June 2025, the University of Michigan's consumer sentiment index for the United States experienced an increase, reaching 60.5. This is a noticeable rise from a near-record low of 52.2 observed in both May and April, and it surpassed the market's anticipated value of 53.5, based on preliminary estimates. This marks the first uptick in consumer sentiment over a six-month period, attributed to widespread enhancements in current condition evaluations (from 58.9 in May to 63.7) and future expectations (climbing from 47.9 to 58.4). Despite this improvement, consumer sentiment remains approximately 20% lower than its level in December 2024, a time when consumer confidence temporarily surged following the election. The ongoing subdued sentiment is largely due to prevailing concerns about economic vulnerabilities, particularly those tied to U.S. tariff policies. On a positive note, inflation expectations have shown significant improvement. Short-term inflation expectations saw a sharp decline to 5.1% in June from 6.6% in May, while long-term inflation expectations eased for the second month in a row, reducing to 4.1% from 4.2%.