In early June, consumers became less pessimistic about the economy and potential inflation surges due to progress in the global trade war, according to a University of Michigan survey. The headline index of consumer sentiment rose to 60.5, surpassing expectations. This improvement coincided with a reduction in President Donald Trump’s tariff rhetoric. Although sentiment indexes remain below their year-ago levels, fears about inflation have softened. The one-year inflation outlook dropped significantly, while the five-year view decreased slightly. Despite this, inflation expectations remain elevated compared to recent years. The Michigan survey will be updated at the end of the month. Economists expect tariffs to impact prices in the coming months.
— new from CNBC
