Consumer Sentiment Rose 10.5% to 49.5 in June

Ann Arbor, MI, June 26, 2026—Consumer sentiment rose 10.5% to 49.5 in June, according to final results from the University of Michigan Survey of Consumers. 

This represents a 18.5% decline year over year. 

 “Consumer sentiment confirmed its early-month reading, rising about 10% above May as gas prices moderated,” says Joanne Hsu, director. “Increases were seen across income, wealth, and political affiliation. Expected business conditions over the next five years surged 16% as consumers’ worries over long-term consequences of the Iran conflict appear to be easing. Still, sentiment remains in unfavorable territory at 13% below the February 2026 reading prior to the start of the Iran conflict, and nearly 20% less than a year ago. The cost of living remains at the forefront of consumers’ minds; for the third straight month, over half of consumers spontaneously mentioned that high prices are weighing down their personal finances. 

“Year-ahead inflation expectations inched down from 4.8% in May to a still-elevated 4.6% this month. The current reading substantially exceeds the 3.4% reading seen in February before the Iran conflict began, along with all 2024 readings. Long-run inflation expectations fell back from 3.9% last month to 3.3% in June, remaining a bit higher than the 2.8% to 3.2% range seen in 2024.”