NEW YORK, June 26 (Xinhua) -- The U.S. consumer sentiment improved in June as gas prices moderated, but the sentiment index remains in unfavorable territory, at 13 percent below February 2026 or prior to the start of the Iran conflict, and nearly 20 percent below a year ago.
The U.S. Consumer Sentiment Index released Friday by the University of Michigan (UM) Surveys of Consumers rose to 49.5 in the June 2026 survey, up from 44.8 in May but below last June's 60.7.
The Current Index rose to 47.7, up from 45.8 in May but below last June's 64.8. The Expectations Index rose to 50.7, up from 44.1 in May and below last June's 58.1.
The survey found that 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.
When asked whether inflation or unemployment posed greater risks to consumers in the year ahead, a substantial 36 percent chose inflation, the highest since February 2025, while only 7 percent reported unemployment. At the start of the year, 23 percent reported that inflation would be the greater challenge, 14 percent chose unemployment.
"While consumers certainly welcomed the recent decline in gas prices, the persistence of high prices overall continues to weigh on their budgets," said UM economist Joanne Hsu, director of the surveys. "Consumers remain quite worried about the prospect of inflation eroding their living standards in the year ahead." ■
