US Consumer Sentiment Rises in June as Gasoline Prices Decline

Consumer sentiment in the United States rose for the first time in several months in early June 2026, according to the University of Michigan's preliminary survey, climbing 9% to 48.9 from a record low of 44.8 in May. The improvement was widespread across age groups, education levels, and political affiliations, with lower-income households showing the strongest gains — consistent with gasoline comprising a larger share of their budgets. National average gas prices have declined for three consecutive weeks, falling from a 2026 peak of $4.564 per gallon on May 21 to approximately $4.10, though prices remain roughly $1 higher than a year ago. The ongoing US-Iran conflict and hostilities in the Strait of Hormuz — through which one-fifth of the world's oil passes — have been the primary driver of energy price volatility since late February, when Operation Epic Fury commenced. Year-ahead inflation expectations eased slightly to 4.6% from 4.8%, and longer-run expectations fell to 3.4% from 3.9%, though overall inflation hit a three-year high above 4% in May. Analysts caution that sentiment is likely to remain historically depressed unless gas prices continue to fall meaningfully, which would likely require restored oil flow through the Strait of Hormuz. GasBuddy analyst Patrick De Haan noted that while prices could fall below $4 or rise above $5 this summer, markets may respond more calmly to new developments as participants grow accustomed to the volatile environment.