US consumer sentiment rises amid improved inflation expectations

According to the University of Michigan, the US Consumer Sentiment Index rose to 60.7 in June from 52.2 a month earlier. The 8.5-point increase was the largest since early 2024 and reached a four-month high. The median estimate of economists polled by Bloomberg suggested no change from the preliminary reading of 60.5.

Joanne Hsu, director of research at the university, said the improvement was reflected in many aspects of the economy due to a recent easing of concerns over tariffs and trade policies.

According to the latest data, US consumers expect prices in the country to rise by 5% over the next year. This is slightly lower than the preliminary data. It also marks a significant improvement from May expectations of 6.6%. As for estimates for the next five to ten years, consumers expect prices to rise 4% per year. This is also lower than May's figures.

Nevertheless, as Hsu noted, consumers are still worried about the potential impact of the tariffs already imposed, and their sentiment remains worse compared to the beginning of the year. Also, current demand from households remains weak, especially in the services sector.