U.S. — The University of Michigan Consumer Sentiment Index recorded a result of 49.5 in June 2026, marking the lowest reading in the survey's recorded history. The University of Michigan's Institute for Social Research has administered the monthly survey since 1952.

Previously, the index dropped to 50 during a period of post-pandemic inflation. During the peak of the COVID-19 pandemic, the index reached 71.8. Following the height of the Great Recession, the index measured 55.3. In 2024, the university changed its consumer sentiment polling method from telephone interviews to an online format.

In May 2026, consumer spending in the U.S. increased by 0.9% month-over-month, representing the fourth consecutive monthly increase. Prices in the U.S. rose 4.2% year-over-year in May 2026, with inflation reaching its highest point in three years during that month. The Federal Reserve halted earlier anticipations of interest rate reductions.

The average personal savings rate in the U.S. fell to 3.0%, the lowest figure since 2022. Analysis from The Conference Board indicated that consumers expect minimal changes in the labor market over the subsequent six months. Lance Roberts, a partner at RIA Advisors, commented on the disparity between surveys and consumer behavior. "Surveys and behavior often part ways, and the gap usually tells you more about the survey than about the consumer," Roberts said. "The partisan gap in sentiment is now larger than the gaps by income, age, or education combined … [so] the survey isn't measuring the economy."

Why It Matters

The June 2026 University of Michigan Consumer Sentiment Index reading represents a historic low point for consumer confidence, despite concurrent increases in consumer spending and consistent growth in the labor market. This divergence suggests potential complexities in how economic sentiment is measured and interpreted. The Federal Reserve's decision to forgo interest rate cuts also indicates a cautious approach to the economic outlook.

This low sentiment occurs as U.S. inflation climbed to a three-year high in May 2026, and the personal savings rate reached a four-year low. The shift in the University of Michigan's polling methodology in 2024 from telephone to online could be a factor in how consumer sentiment is captured and compared to historical data.