US consumer sentiment jumps for first time in 2025, says UMich report; tariff pause and steady prices lift confidence
US consumer sentiment improved in June for the first time in six months, according to preliminary data released Friday by the University of Michigan, offering signs of economic stabilization as inflation remains subdued and trade tensions with China temporarily ease.
The university's closely watched Consumer Sentiment Index jumped to 60.5 in June from 52.2 in May — a 16% rise that marks the sharpest increase in a year. The rebound follows five consecutive monthly declines and lifts the index from its second-lowest level in the survey's nearly 75-year history. Despite the uptick, sentiment remains down 20% compared with December 2024.
"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,' said Joanne Hsu, director of the survey, AP reported.
'However, consumers still perceive wide-ranging downside risks to the economy.'
The improvement comes after President Donald Trump postponed a sweeping round of tariffs on imports from roughly 60 countries in April and subsequently reached a truce with China last month. While tariffs remain elevated by historical standards, the White House has signaled a willingness to pause escalation pending further talks.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
CVS Is Silent About This 87¢ ED Med – Here's the Truth
Health Alliance by Friday Plans
Undo
The Conference Board's Consumer Confidence Index — a separate metric released late last month — also showed improvement after five straight monthly declines, with analysts attributing the shift to easing fears over inflation and trade policy unpredictability.
Official inflation data released earlier this week showed consumer prices rising 2.4% year-on-year in May, up slightly from 2.3% in April. While tariffs are expected to put further pressure on prices in the second half of the year, inflation remains close to the Federal Reserve's 2% target for now.
Sentiment remains sharply divided along political lines. Republicans, who broadly support Trump's economic policies, continue to express stronger confidence than Democrats, whose views had been more optimistic under the Biden administration. However, sentiment improved across party lines in June, including among independents.
Inflation expectations among consumers also declined in June — a development likely to be welcomed by the Federal Reserve ahead of its policy meeting next week.
Economists view such expectations as a key variable in inflation dynamics, as fears of rising prices can influence wage demands and spending behavior.
The Fed is widely expected to leave its benchmark short-term interest rate unchanged at approximately 4.3% when it meets next week, as policymakers monitor the evolving impact of trade policy and inflationary risks on the broader economy.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News18
39 minutes ago
- News18
US Increases West Asia Evacuations, Travel Alerts After Trump Orders Strikes On Iran
In internal and public notices, the US State Department over the weekend significantly ramped up its cautionary advice to Americans in the Middle East. The US State Department has increased emergency evacuation flights for American citizens seeking to leave Israel, directed nonessential staff to depart the US Embassy in Lebanon, and heightened travel advisories across the Middle East due to fears of potential Iranian retaliation against US interests in the region. In internal and public notices, the department over the weekend significantly ramped up its cautionary advice to Americans in the Middle East. In a notice on Sunday, after American strikes against Iran's nuclear facilities, the department said it had ordered nonessential personnel and the families of staff at the US Embassy in Beirut to leave Lebanon 'due to the volatile and unpredictable security situation in the region." The notice made no mention of any potential evacuation flights or other assistance for private Americans wanting to leave Lebanon but said those who want to should try to use existing commercial services to depart. At the same time, the department issued warnings to US citizens in Saudi Arabia and Turkey to take extra security precautions given the uncertainty. 'Given reports of regional hostilities, the US Mission to Saudi Arabia has advised its personnel to exercise increased caution and limit non-essential travel to any military installations in the region," the department said in its notice for Saudi Arabia. In Turkey, the department said US personnel 'have been cautioned to maintain a low profile and instructed to avoid personal travel to the US Consulate Adana consular district," which includes the NATO airbase at Incirlik. 'Negative sentiment toward US foreign policy may prompt actions against US or Western interests in Turkey," the statement said. Late Saturday, the department said it was stepping up evacuation flights for American citizens from Israel to Europe and continuing to draw down its staff at diplomatic missions in Iraq. But even before the US airstrikes on Iran were made public by President Donald Trump on Saturday evening in Washington, the US Embassy in Jerusalem had announced the start of evacuation flights for private Americans from Israel. After the US strikes in Iran, security officers at all US embassies and consulates have been instructed to conduct reviews of their posts' security posture and report back to the State Department by late Sunday. First Published: June 22, 2025, 23:36 IST
Time of India
40 minutes ago
- Time of India
Delimitation to blame for BJP's Fatorda poll losses, says Damu
Margao: BJP state president Damodar Naik on Sunday attributed his party's consecutive electoral defeats in the Fatorda constituency to demographic changes brought about by the 2012 delimitation exercise. He said that while the redrawing of boundaries severed the party's traditional strongholds, the minority-dominated areas that largely comprised the Fatorda constituency remained beyond BJP's electoral reach. Naik was elected MLA of Fatorda for two terms before losing to incumbent Vijai Sardesai since the 2012 assembly polls. Naik said that the delimitation process fundamentally altered Fatorda's electoral landscape. The constituency lost significant portions of Gogol and Comba — areas where BJP traditionally enjoyed strong support — which were redistributed to neighbouring Curtorim and Margao constituencies respectively. Naik drew parallels between Fatorda and other Catholic-dominated constituencies in South Goa where BJP has struggled to make inroads. 'Just as BJP is unable to penetrate Benaulim, Nuvem or Velim, we couldn't do so in Fatorda as well since 2012 for the same reason,' he said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 3.5, 4.5 BHK Homes starting at ₹4.89 Cr.* Hero Homes Learn More Undo Sardesai has maintained his grip on the Fatorda seat across three consecutive elections — 2012, 2017, and 2022 —defeating Naik each time with margins ranging from over 1,300 to 1,500 votes. The political rivalry between Naik and Sardesai recently intensified at Friday's BJP karyakarta melava. At the gathering, Naik challenged Sardesai to name a single signature project implemented during his 13-year tenure, even stating his readiness to quit politics if Sardesai could prove he brought any major development project to the constituency. Naik specifically highlighted his own achievements during his two-term tenure as the Fatorda MLA, citing the South Goa district hospital, South Goa collectorate complex, Ravindra Bhavan, and South Goa Planning and Development Authority's market complex as the flagship projects completed under his leadership. His challenge was supported by Margao MLA Digambar Kamat, who publicly acknowledged that Fatorda witnessed infrastructure development during Naik's earlier stint as the constituency's MLA. A day later, Sardesai's supporters countered Naik by listing various agricultural support initiatives and infrastructure maintenance projects undertaken by their leader, including free seeds, fertilisers, tractors, and harvesters for farmers, as well as desilting of nullahs to address flooding concerns.
Time of India
40 minutes ago
- Time of India
Union minister Manohar Lal Khattar inaugurates Baba Banda Singh Bahadur Trust office in Yamunanagar
Chandigarh: Union housing, urban affairs and power minister Manohar Lal Khattar on Sunday inaugurated the office of Baba Banda Singh Bahadur Lohgarh Foundation Trust built at PWD Rest House Vyaspur in Yamunanagar. During a meeting chaired by the Union power minister with the members of Baba Banda Singh Bahadur Lohgarh Foundation Trust, detailed discussion was held on initiating the construction of the Lohgarh Memorial. A monitoring committee and expert committee will monitor the construction process of the memorial, and the issue of organisation of cultural programmes related to Sikh heritage was also discussed. Former cabinet minister Kanwar Pal Gujjar was nominated as the chairman of the monitoring committee. The expert committee will be responsible for identifying key historical facts and significant events related to the monument, as well as contributing to its preservation and enhancement through in-depth research. Khattar said the trust and other sub-committees will play an important role in preserving the rich heritage of Baba Banda Singh Bahadur and developing museums, monuments, and literature on Lohgarh and Baba Banda Singh Bahadur. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like ¡Lleva tu práctica al siguiente nivel! Completa el test y descubre tu enfoque de bienestar Soy Zen Prueba gratis Undo During the meeting, the provision of giving income tax exemption to the person or institution donating in the name of Baba Banda Singh Bahadur Lohgarh Foundation Trust was also considered. Detailed discussions were held on the implementation of various projects under Baba Banda Singh Bahadur Lohgarh Foundation Trust and other related points. During the meeting, Rakesh Beniwal, founder of Kisan Yuva Club, and his colleague Aman Virk handed over a cheque of Rs 11 lakh to Khattar as a donation in the name of the trust. Earlier, chancellor of Desh Bhagat University, Zora Singh, donated Rs 11 lakh to the trust. For this, the Union minister expressed his gratitude and appealed to the people to actively participate in such religious and social activities. MSID:: 122007252 413 |
