The final reading of the University of Michigan’s Index of Consumer Sentiment jumped to 60.7 in June 2025, up +16.3% MoM but down -11.0% YoY, marking the first monthly improvement in six months.

• The Current Economic Conditions index rose +10.0% MoM to 64.8, though still down -1.7% YoY.
• The Index of Consumer Expectations climbed +21.3% MoM to 58.1, but remains down -16.5% YoY.
• Year-ahead inflation expectations fell sharply to 5.0% from 6.6% in May, while long-run expectations eased to 4.0% from 4.2%.
• Despite the rebound, sentiment is still roughly 18% below its December 2024 post-election level and reflects persistent concerns about inflation and tariffs.

Year-ahead inflation expectations eased to 5.0% in the final June reading, down from 6.6% in May and below the early reading of 5.1%.

• Long run inflation expectations eased to 4.0%, down from 4.2% in May and 4.1% in the early reading.
• Both readings are the lowest since February 2025 when tariff announcements began.