US consumer sentiment rebounded in June for the first time this year, according to the University of Michigan, though Americans remain wary of the economy amid lingering concerns over inflation, tariffs, and a potential slowdown.
The Consumer Sentiment Index rose 16.3% to 60.7 in June, a notable uptick, but still 18% below its December 2024 level.
The expectations index jumped 21.3% to 58.1, while sentiment around current conditions increased 10% to 64.8.
“Consumers feel they have some breathing room given that the historically high tariffs announced earlier this year have not been sustained,” said Joanne Hsu, chief economist for the University’s Surveys of Consumers. “However, they remain cautious and still worry about inflation and an economic slowdown.”
Labor market views still downbeat
Expectations around jobs have improved since March, but 57% of consumers still expect unemployment to rise, compared with 40% at the end of 2024. Expectations for personal finances also rose 17% in June but remain 17% below December levels.
“Consumers feel modestly more secure about their incomes than last month, but not enough to support strong spending,” Hsu added.
Tariffs still dominate economic concerns
Tariffs continue to loom large in consumers’ minds. While unsolicited mentions of tariffs declined slightly to 59%, the topic has dominated sentiment for three straight months.
Fewer consumers saw tariffs as a reason to delay purchasing durable goods or cars, but those metrics still haven’t returned to pre-2025 levels.
Overall, 55% of consumers expect business conditions to worsen over the next year, down from 64% in May, but still far higher than the 29% who felt that way last November.
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