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2h ago

U.S. Consumer Sentiment Rises 9% as Gasoline Prices Ease

The preliminary uptick still leaves confidence far below normal and further gains depend on sustained drops in fuel costs tied to restored oil flows through the Strait of Hormuz.

Customers shop for groceries at a Walmart Supercenter retail store in North Bergen, New Jersey, U.S., November 21, 2025. REUTERS/Mike Segar
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Gas prices have declined in recent weeks, which has helped consumer sentiment recover.
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Overview

  • The University of Michigan’s preliminary June index rose 9% to 48.9, the survey showed on Friday, marking the first month-over-month increase since February.
  • Survey director Joanne Hsu said the early-June improvement tracked directly to easing gasoline prices, which are a highly visible cost for households.
  • Lower-income consumers posted the largest gains in sentiment because gasoline makes up a bigger share of their budgets and recent price declines gave them more immediate relief.
  • Sentiment remains well below historical norms after a record low in May, so analysts warn the recovery is fragile and likely requires sustained gasoline declines.
  • Because consumer spending drives roughly two-thirds of U.S. GDP, persistent weak confidence could weigh on spending and factor into Federal Reserve decisions if fuel and oil flows through the Strait of Hormuz do not normalize.