Economic Buzz: US consumer confidence improves in June

The Consumer Sentiment Index in the United States improved by 9.2% in June compared to the previous month, reaching 48.9, topping analysts' expectations, according to a preliminary report released by the University of Michigan on Friday. However, the figure plunged by 19.4% on an annual basis.

The Current Economic Conditions Index jumped by 5.7% month-over-month and plunged 25.3% year-over-year to stand at 48.4 in June. Meanwhile, the Index of Consumer Expectations rose 11.8% on a monthly basis and slid 15.3% on a yearly basis, coming in at 49.3.

Year-ahead inflation expectations softened from 4.8% last month to 4.6%, and long-run inflation expectations declined from 3.9% to 3.4% in June. Even with June's early gains, however, views of the economy are still relatively dour. Sentiment is currently 13% below January 2026 and 19% below a year ago, as consumers remain focused on kitchen table issues. They feel burdened by the recent escalation in inflation and worry that higher inflation could remain stubborn going forward, particularly in the short run, it was noted in the report.

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