By Arlenys Tabare
According to the University of Michigan survey published this Friday, lConsumer confidence in the United States increased by 9% in June after having fallen to historic lows at the beginning of the war against Iran, which has caused a rise in energy prices in recent months.
While the preliminary reading of forty eight.9 points earlier this month exceeded economists’ expectations, the figures come two days after the report from the Bureau of Labor Statistics (BLS), where an increase of the inflation rate at 4.2% year-on-yearagain moving away from the Federal Reserve’s goal of 2%.
For Joanne Hsu, director of the surveys, so far in June consumer confidence has improved: “Consumers experienced some relief thanks to the drop in gasoline prices at the beginning of the month,” she said.
Since the conflict in the Middle East began, Gasoline prices increased by 50%, and in some states Americans were paying up to $6 per gallon at the pump; currently, according to AAA reports, The cost is $4.07 per gallon.
“Low-income consumers showed a particularly significant increase in confidence, consistent with gasoline accounting for a larger proportion of their budgets,” Hsu said.
Although the high cost of fuel has been one of the main discontents of the American consumer, according to the BLS report, gasoline was not the only thing that has increased in recent months.
The report highlights that the price of food rose 3.1% more than a year ago; housing increased 3.4% compared to last year. Like electricity services, which rose 5.9% more compared to 2025.
On the other hand, the University of Michigan recorded that, for next year, American consumers anticipate inflation of 4.8%. Consumer spending represents approximately 60% of economic activity in the United StatesTherefore, if distrust continues at high levels, the economy could weaken.
Keep reading:
- “I love inflation,” says Donald Trump regarding the increase in prices in the US.
- 172,000 jobs created in the United States in May, more than expected
- US jobless claims rise to highest level since war with Iran began
- US job postings rose to highest level in April since 2024, BLS says
