American consumers are feeling slightly less terrible about the economy. The University of Michigan’s final Index of Consumer Sentiment for June 2026 came in at 49.5, up 10.5% from May’s 44.8, a figure that represented the lowest reading ever recorded by the survey.
Two forces appear to be pulling sentiment off the floor: moderating gasoline prices and a meaningful decline in long-term inflation expectations.
Year-ahead inflation expectations eased to 4.6%, while long-run expectations dropped to 3.3%.
The improvement wasn’t confined to one demographic pocket. Sentiment rose across age groups, education levels, and political affiliations. Lower-income households led the charge, which makes sense: those consumers are most exposed to energy costs and grocery inflation, so any relief there registers immediately.
The preliminary reading, released on June 12, had pegged sentiment at 48.9. The final number of 49.5, published June 26, came in slightly higher, suggesting conditions continued to stabilize through the month rather than fading after an initial pop.
