U.S. consumer sentiment slightly improves, but still 19 pct below a year ago

NEW YORK, June 12 (Xinhua) -- The U.S. Consumer Sentiment Index rose to 48.9 in June 2026, according to a preliminary reading released Friday by the University of Michigan (UM) Surveys of Consumers, up from the final reading of 44.8 in May 2026 but down from the final reading of 60.7 in June 2025.

Despite June's early gains, views of the economy are still relatively dour. The sentiment is currently 13 percent below January 2026 and 19 percent 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 persist going forward, particularly in the short run.

The preliminary reading of the Current Economic Conditions Index rose to 48.4 in June, up from the final reading of 45.8 in May but below last June's 64.8. The Index of Consumer Expectations was 49.3, up from the final reading of 44.1 in May but below last June's 58.1.

The survey finds that lower-income consumers exhibited a particularly strong sentiment increase, consistent with the fact that gasoline comprises a larger share of their budgets.

Year-ahead inflation expectations inched down from 4.8 percent in May to a still-elevated 4.6 percent this month, substantially exceeding the 3.4 percent reading seen in February 2026 prior to the start of the Middle East conflict. Enditem