Americans are feeling slightly less terrible about the economy, and cheaper gas deserves most of the credit.
The University of Michigan’s preliminary Consumer Sentiment Index for June climbed to 48.9, up from May’s historic low of 44.8. That beat economist expectations of 46.0. The catalyst: national average gasoline prices dropped to $4.11 per gallon, down from $4.56 in late May.
A bounce, not a recovery
A reading of 48.9 is still historically grim. The index sits roughly 13% below where it was in February 2026, before the Iran conflict began reshaping energy markets and consumer psychology. Compared to June 2025, when the index registered 60.7, current sentiment is nearly 20% lower.
The data, released on June 12, showed broad-based gains across demographic groups. Lower-income households posted the strongest improvement. For families spending $200 or more a month at the pump, the recent price decline translates into real, tangible breathing room for groceries and other essentials.
