After months of gloom driven largely by surging gas prices, Americans are showing signs of renewed optimism about the economy, according to fresh data released Friday. The University of Michigan’s latest consumer sentiment survey rose to a final reading of 49.5 in June, up from an earlier reading of 48.9. That marks the first uptick in sentiment since February, before the US-Israeli conflict with Iran sent global energy prices soaring.
The improvement comes as gas prices have eased from near-historic highs following a fragile ceasefire that has mostly held, reopening key oil shipping lanes like the Strait of Hormuz. However, the rebound is modest — sentiment remains 13% lower than in February, before the war began. Consumers are still far more downbeat than they were earlier this year.
“For the third straight month, over half of consumers spontaneously mentioned that high prices are weighing down their personal finances,” noted Joanne Hsu, director of the University of Michigan’s Surveys of Consumers. Even with lower pump prices, the cost of everyday goods continues to strain household budgets.
The data underscores how deeply the Middle East conflict and its aftermath have shaken consumer confidence, even as temporary relief at the gas pump provides a glimmer of hope. Analysts will watch closely whether the ceasefire holds and whether further price drops can sustain the upward trend in sentiment.
