Consumer Sentiment Rose 1.6% in June to 61.7

Washington, DC, August 1, 2025-Consumer sentiment rose 1.6% in June to 61.7, according to the University of Michigan Survey of Consumers. 

This represents a 7.1% decline year over year. 

“Consumer sentiment improved for the second straight month, inching up a scant single index point from June,” according to Joanne Hsu, Survey of Consumers director. “Current conditions rose about 5% to its highest reading since February 2025, while the expectations index fell slightly. A rise in sentiment among stock holders was partially offset by a decline among consumers who do not own stocks. Perceptions of this month’s economic developments were similar across the political spectrum; Republicans, Independents, and Democrats all saw some minor increases in sentiment this month. Although recent trends show sentiment moving in a favorable direction, sentiment remains broadly negative. Consumers are hardly optimistic about the trajectory of the economy, even as their worries have softened since April 2025. 

“Year-ahead inflation expectations fell for a second straight month, plunging from 5.0% last month to 4.5% this month. This is the lowest reading since February 2025 but above December 2024 just after the election. Long-run inflation expectations receded for the third consecutive month, falling back from 4.0% in June to 3.4% in July. This is the lowest reading since January 2025 but, again, still considerably higher than the December 2024 reading.”