U.S. Consumer Sentiment Rises to 49.5 in July as Gas Falls Below $4
Updated
Updated · The New York Times · Jul 2
U.S. Consumer Sentiment Rises to 49.5 in July as Gas Falls Below $4
3 articles · Updated · The New York Times · Jul 2
Summary
Consumer sentiment climbed to 49.5 in July from 44.8 in May, the University of Michigan said, snapping a slide that began after U.S. and Israeli strikes on Iran in February.
Gasoline helped drive the rebound: the national average price slipped below $4 a gallon, down more than 10% from a month ago after a June 15 U.S.-Iran memorandum of understanding.
Joanne Hsu said gains were broad across income, wealth and political affiliation, with worries about the conflict’s long-term economic fallout easing.
Sentiment still remains 13% below February levels and nearly 20% below a year ago, with more than half of consumers still citing high prices as a strain on personal finances.
That mixed picture comes as inflation stayed elevated at 4.2% in May, including a 23.5% annual jump in energy prices, even as the labor market has recently stabilized.
Will the Iran peace deal provide lasting relief from soaring living costs for American families?
Can the Fed's new 'no guidance' policy on interest rates tame inflation without triggering a market crash?
As AI transforms the economy, are policymakers flying blind without accurate data on its real impact?
June 2026: U.S. Consumer Sentiment Rises Sharply but Stays Depressed as Inflation and Energy Fears Persist
Overview
In June 2026, U.S. consumer sentiment saw a notable but cautious rebound, with the University of Michigan Consumer Sentiment Index rising over 10%. Despite this improvement, the index remained historically low at 49.5, well below its long-term averages and even lower than at the start of past recessions. This fragile recovery reflects ongoing concerns about high prices and the cost of living, as well as the lingering effects of recent geopolitical tensions. While sentiment improved, it stayed nearly 41% below its historical mean, highlighting that underlying financial pressures and uncertainty continue to weigh on American households.