UM consumer sentiment index rises for first time in 6 months
CHICAGO, June 27 (Xinhua) -- The Consumer Sentiment Index released Friday by the University of Michigan Surveys of Consumers rose to 60.7 in the June 2025 survey, up from 52.2 in May and below last June's 68.2.
The UM consumer sentiment has improved for the first time in six months.
The Current Index rose to 64.8 in June, up from 58.9 in May and below last June's 65.9; the Expectations Index rose to 58.1, up from 47.9 in May and below last June's 69.6.
Labor market expectations improved in June but remain considerably worse than at the beginning of the year. About 57 percent of consumers expect unemployment to rise in the year ahead, down from 66 percent in March but still much higher than the 40 percent seen in December 2024.
Expectations for consumers' own income growth improved modestly in June, but June readings were worse than six months ago. Expectations for personal finances soared 17 percent from near historic lows in May but were 17 percent below December 2024.
Beliefs about the anticipated effects of tariffs have shaped consumers' views of the economy this year. In June, about 59 percent of consumers provided unsolicited comments about tariffs, down from 66 percent in May but marking three consecutive months a majority of consumers did so.
The share of consumers expecting business conditions to worsen in the year ahead fell from 64 percent in May but stood high at 55 percent, compared with just 29 percent in November 2024.
"Consumers feel they have some breathing room given that the historically high tariffs announced earlier this year have not been sustained, and the worst-case scenarios for the economy have not come to fruition," said economist Joanne Hsu, director of the University of Michigan's Survey of Consumers. "However, consumers still worry that higher inflation and an economic slowdown are on the horizon, and they remain very cautious."
The Surveys of Consumers is a rotating panel survey based on a nationally representative sample that gives each household in the coterminous United States an equal probability of being selected. Interviews are conducted throughout the month by telephone.
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