University of Michigan: U.S. Consumer Sentiment Rises for First Time since 
December


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- U.S. consumer sentiment rose in June for the first 
time in six months, with the Index of Consumer Sentiment increasing by 8.3 
points to 60.5, up 15.9% from May's 52.2 reading, according to preliminary data 
from the University of Michigan's Surveys of Consumers released Friday morning. 
The index, however, remains 11.3% below its June 2024 level of 68.2. 

   The Index of Consumer Expectations, which reflects the economic outlook over 
the next 12 months, rose sharply by 10.5 points to 58.4, a 21.9% increase from 
May, though still down 16.1% from the year prior. 

   The Current Economic Conditions Index, measuring sentiment about personal 
finances and buying conditions, climbed 4.8 points to 63.7 in June, an 8.1% 
gain from last month but 3.3% lower than year-ago levels. 

   "Consumer sentiment improved for the first time in six months, climbing 16% 
from last month but remaining about 20% below December 2024, when sentiment had 
exhibited a post-election bump," said Joanne Hsu, Director of the Surveys of 
Consumers. 

   The improvement was broad-based, with all five index components rising, 
including a particularly steep gain in expectations for short- and long-run 
business conditions. The increase appears to reflect some easing in consumer 
anxiety over the high tariffs announced in April and the subsequent policy 
volatility. 

   Despite the gains, consumer views on business conditions, personal finances, 
big-ticket purchases, labor markets, and equities remain well below levels seen 
in December 2024. 

   Year-ahead inflation expectations fell sharply to 5.1% from 6.6% in May, 
while long-run inflation expectations edged down to 4.1% from 4.2% last month. 
Both are at three-month lows. 

   In response to the report, the NYMEX West Texas Intermediate crude futures 
contract rose by $4.77 to $72.80 bbl, while the ICE Brent front-month futures 
contract climbed by $4.77 to $74.13 bbl. 




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