In June, consumer sentiment in the U.S. rose for the first time in six months, reflecting improving economic views as inflation remains stable. The University of Michigan's consumer sentiment index climbed 16% to 60.5%. After enduring a significant low point due to high tariffs, the increase suggests relief following a truce in the U.S.-China trade war. While sentiment is still 20% lower than December 2024, uncertainty remains, with consumers wary of future economic risks. Their perspectives on the economy are also highly partisan, reflecting a divide between Republican and Democratic views.
Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed.
Americans have largely taken a darker view of the economy's future after President Donald Trump unleashed a wide-ranging trade war, imposing steep tariffs on China.
U.S. duties remain elevated compared with historical levels, but so far they have not worsened overall inflation, with prices rising just 2.4% in May.
Consumer confidence is sharply divided by political outlook, with Republicans feeling much better about the economy under Trump than Democrats.
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