The latest University of Michigan U.S. consumer sentiment survey revealed that consumer optimism surged regarding the economy in June vs. a month prior.

The U of M’s index for consumer sentiment increased to 60.5 in June from 52.2 in May, reflecting a 15.9% increase month-over-month, but still 20% below December 2024 expectations. Additionally, June’s figure was down 11.3% year-over-year. Economists polled by news outlets forecasted a preliminary reading of 53.5 in June.

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The Survey of Consumers director noted that June saw broad increases consistently across all groups by age, income, wealth, political party and geographic region.

University of Michigan Consumer Sentiment Index — Month-Over-Month

source: tradingeconomics.com

The survey noted that consumers sensed a relative easing of tariff-related pressures, noting that while concerns about broader economic risks remain, sentiment has stabilized somewhat since the initial shock of April’s high tariffs and the subsequent policy volatility.

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According to the survey results, long-run inflation expectations decreased for the second consecutive month, declining from 4.2% in May to 4.1% in June.

Similarly, the survey’s index for year-ahead expectations dropped to 5.1% in June, following May’s 6.6%. The monthly reading was still well above the range of 2.3% to 3.0%in the two years preceding the COVID-19 pandemic.