The latest University of Michigan consumer sentiment index ticked up in May, but it's still down from late last year
Photo: David Paul Morris (Getty)
The good news: Consumers are feeling more optimistic about the economy, as sentiment rose 16% in June from a historically low May. The bad news: That number is still down 18% from December 2024, before President Donald Trump’s inauguration and subsequent trade war.
According to the University of Michigan’s Survey of Consumers, a national poll that dates back to 1946, Americans felt 20% better about their personal finances in June, but they're still worried about an economic slowdown and increased inflation due to tariffs.
In general, the numbers are up month-over-month but still down from this time in 2024, by as much as 16.5%. The survey period covered May 27 to June 23.
May 2025’s numbers were the second-lowest in the poll’s history, topped only in June 2022 when inflation spiked to a 41-year high. With that low a bar, any improvement at all seems remarkable. More than three-quarters of May respondents cited Trump’s tariffs as the primary cause of their uncertainty.
After unleashing massive tariffs on what he dubbed “Liberation Day” in April, Trump had promised 90 trade deals in 90 days, a deadline his administration failed to meet, with only one deal with the U.K. to show for it.
Now, however, details of a China trade deal are coming to light, a deadline on a Canadian deal is looming by July 21, deadlines on other negotiations are being extended, and Treasury Secretary Scott Bessent told Fox News on Friday that there could be 10 deals done by Labor Day.
On Friday, the S&P 500 hit another record high. Fresh momentum stems from a few big developments: easing geopolitical tensions, positive trade headlines, soft inflation data released Friday morning, dovish signals from the Federal Reserve, and strong AI-tech earnings.
—Shannon Carroll contributed to this article.
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