The preliminary findings of the University of Michigan’s well-regarded consumer sentiment index, released on Friday (June 13), surged by 16% to 60.5. This significant spike follows a series of declines that left last month’s preliminary figure at one of the lowest points in the index’s nearly 75-year history. Compared to December 2024, consumer sentiment remains down by 20%.
“Consumers seem to have adjusted somewhat to the shock of the exceptionally high tariffs announced in April and the uncertainty that followed,” stated Joanne Hsu, the survey’s director, in a written statement. “Nevertheless, consumers still recognize a variety of potential risks to the economy.”
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Many Americans have adopted a pessimistic outlook on the future of the economy after President Donald Trump initiated an extensive trade war, implementing significant tariffs on China, the European Union, and numerous other countries.
However, in April, Trump deferred a set of major tariffs that would impact around 60 nations and last month achieved a temporary ceasefire with China, following a period of escalating tariffs between both sides. Although US duties remain high relative to historical averages, they have not yet aggravated overall inflation.
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