Economic Report Summary - June 12, 2026
Consumer Sentiment Index
The preliminary University of Michigan Consumer Sentiment Index for June 2026 has shown a notable increase, coming in at 48.9. This is significantly higher than the forecast of 46.0 and the previous reading of 44.8. The increase of approximately 4 index points represents a 9% rise in consumer sentiment.
Factors Influencing Sentiment
The improvement in consumer sentiment is attributed to several factors, notably the decline in gasoline prices at the beginning of the month. This positive sentiment was widespread, with gains observed across various demographics, including age, education, and political affiliations. Notably, lower-income consumers experienced particularly strong gains, likely due to the significant impact of fuel costs on their household budgets.
Financial Assessments
During this month, assessments regarding personal finances, financial expectations, and business conditions have all shown improvement. However, despite this rebound, consumer sentiment remains weak, standing 13% below the levels recorded in January 2026 and 19% lower than the same time last year. Consumers continue to express concerns over everyday cost-of-living pressures and elevated inflation rates.
Inflation Expectations
Inflation expectations have shown some easing, with one-year inflation expectations dropping from 4.8% in May to 4.6% in June. However, these figures remain elevated. Long-run inflation expectations also declined from 3.9% to 3.4%, still above the 2.8%–3.2% range observed throughout 2024.
Survey Methodology
The interviews for the survey were conducted between May 19 and June 8, providing a timely snapshot of consumer sentiment in the current economic climate.
Market Reactions
On the same day, the USDIDX showed a decline despite the positive consumer sentiment data. Additionally, Wall Street experienced a rebound as oil prices fell, with notable movements in various stocks, including a significant surge in SpaceX's stock market debut.