US Consumer Confidence Rises in June on Falling Gas Prices

The Conference Board reported Tuesday that the U.S. consumer confidence index rose 0.6 points to 91.2 in June. This modest increase is attributed to falling gasoline prices, which dropped to a national average of $3.85 per gallon from peaks exceeding $4.50 following the start of the U.S.-Iran conflict on February 28.

While falling oil prices provided relief from inflation fears and improved appraisals of business conditions, overall sentiment remains pessimistic. The index remains below the June 2025 reading of 95.2. Consumers reported deteriorating views of their family financial situations for a third consecutive month, and perceptions of the labor market softened, with 22.5% of consumers stating that jobs are hard to get.

Despite these concerns, steady consumer spending maintained economic growth at an estimated annual rate of 2.5% for the April-June quarter. Government data indicated 7.6 million open jobs remained in May, with the Labor Department expected to report 100,000 new jobs for June and a 4.3% unemployment rate.

Economists like Dean Baker argue the rise is insignificant given high inflation and the weak jobs market. Additionally, analysts suggest that persistent economic pessimism and fears regarding artificial intelligence-driven job losses could negatively impact GOP prospects in the November midterm elections.