Consumer Sentiment Logs First Increase in 6 Months, Survey Confirms

12:53 PM EDT, 06/27/2025 (MT Newswires) -- US consumer sentiment rose for the first time in six months in June, final survey results from the University of Michigan showed Friday, confirming its initial findings.

The main sentiment index jumped to 60.7 this month from 52.2 in May. Initial survey results released earlier this month showed that sentiment in June rose to 60.5, which was the consensus in a Bloomberg poll for the final reading.

The gauge for current economic conditions increased 10% to 64.8 in June, while the expectations measure climbed 21% to 58.1.

Sentiment improvement was broad based across various aspects of the economy, with expectations for personal finances and business conditions rising at least 20%, Surveys of Consumers director Joanne Hsu said. However, consumer views were still generally in line with an economic slowdown and a projected rise in inflation, according to Hsu.

"Consumers continue to be concerned about the potential impact of tariffs, but at this time they do not appear to be connecting developments in the Middle East with the economy," Hsu said.

On Thursday, a final estimate by the Bureau of Economic Analysis showed that the US economy contracted more than previously estimated in the first quarter as consumer spending weakened.

Year-ahead inflation expectations dropped to 5% in June from 6.6% last month, while the long-run outlook decreased to 4% from 4.2%, the survey showed Friday. "Both readings are the lowest in three to four months," Hsu said.

Although concerns regarding the potential impact of tariffs on inflation "softened somewhat," price expectations continue to be above the readings seen throughout the second half of last year, according to Hsu. This reflects general beliefs that risks to inflation have not fully subsided, she added.

The US and China have confirmed details of a trade framework that would allow exports of rare earth and easing of technology curbs, CNBC reported Friday, citing China's Ministry of Commerce. Beijing will reportedly review and approve export applications for items subject to export control rules, while Washington will cancel various existing restrictive measures imposed against China.

Earlier this week, the US brokered a ceasefire between Israel and Iran, helping ease tensions in the Middle East.

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