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U.S. Consumer Sentiment Rises to 48.9 as Gasoline Prices Ease

Preliminary gains point to some relief in short-term inflation worries as the index remains near record lows and a final June reading on June 26 could change the outlook.

Customers shop for groceries at a Walmart Supercenter retail store in North Bergen, New Jersey, U.S., November 21, 2025. REUTERS/Mike Segar
Image
Low angle view of a young woman filling gas into her car at gas station.
Gas prices have declined in recent weeks, which has helped consumer sentiment recover.

Overview

  • The University of Michigan’s preliminary Index of Consumer Sentiment rose to 48.9, a 9% increase from May’s record low of 44.8, in a release published on Friday.
  • Surveys of Consumers director Joanne Hsu said the improvement was driven mainly by early-June drops in gasoline prices that gave households immediate relief at the pump.
  • One-year inflation expectations fell to 4.6% and long-run expectations declined to 3.4%, levels that are lower than last month but still well above the Fed’s 2% target.
  • The uptick was broad based across age, education and political groups and was strongest for lower-income households, who spend a larger share of their budgets on fuel.
  • The reading is preliminary and could be revised when the University of Michigan posts the final June survey on June 26; sustained recovery likely requires continued fuel-price easing and clearer price stability, which would affect consumer spending and economic growth.