Consumer Sentiment Increased in June for the First Time This Year

• Consumer sentiment in the U.S. rose by 16% in June after a prolonged decline.
• Decreased trade tensions contributed to improved economic outlooks.
• Inflation has stabilized, but food prices continue to rise.

This is reported by Associated Press, CNN, and Marca.

Consumer sentiment in the U.S. increased in June for the first time in six months, indicating an improvement in Americans' economic outlooks amid stable inflation and reduced trade tensions. The previous value of the consumer sentiment index calculated by the University of Michigan rose by 16% to 60.5. This significant increase occurred after prolonged declines that led to a record low last month when consumer sentiment fell to the second lowest level in the 75-year history of the survey.

Survey director Joan Hsu noted that "consumers seem to have calmed down a bit after the shock of the extremely high tariffs announced in April and the political instability observed in the following weeks." However, despite the improved sentiment, Americans still perceive significant risks to the economy.

According to economists, these changes in sentiment are linked to reduced trade tensions, as President Trump suspended plans for new tariffs on 60 countries and achieved a temporary truce with China. Nevertheless, consumer sentiment remains 20% lower than the level in December 2024.

Changes in Inflation

According to the latest consumer price report, inflation in May 2025 increased by 2.4% year-over-year, which is a slight decrease compared to forecasts. Core inflation, which excludes food and energy, rose by 2.8%. While overall inflation is still lower than the post-pandemic peak of 9.1%, it remains above the Fed's target of 2%.

The primary reason for the stabilization of inflation was the decrease in gasoline prices, which fell by 12% in May. However, food prices, particularly for meat and coffee, continue to rise. Experts warn that further price increases should be expected due to the possible impact of Trump's tariff measures.

Fed officials are likely to keep interest rates unchanged at the scheduled meeting on June 18, as economic uncertainty remains high.

Теги: США/Економіка