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4d ago

U.S. Consumer Confidence Surges to 60.5 as Tariff Shock Eases

Consumers trimmed near-term inflation outlook after a pause in tariff threats.

A woman shops for lettuce at the Mid-Ohio Market at Norton, a modern food pantry designed to replicate a grocery store experience, in Columbus, Ohio, U.S., May 13, 2025. REUTERS/Evelyn Hockstein/File Photo
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American consumers appear to have settled a little after the extremely high tariffs announced in April.
Consumer sentiment Gen Z women at the mall.

Overview

  • The University of Michigan’s consumer sentiment index jumped 15.9% in early June to 60.5, well above the Dow Jones estimate of 54.
  • Current conditions readings rose 8.1% and future expectations climbed 21.9%, marking broad‐based gains in consumer attitudes.
  • The one-year inflation outlook tumbled 1.5 percentage points to 5.1%, while the five-year view edged down to 4.1%.
  • Eased rhetoric from President Trump and a 90-day trade negotiation window helped soften consumers’ fears of higher prices.
  • The softer inflation data led Trump and other White House officials to urge Fed rate cuts even as markets price in no reduction before September.