Joanne Hsu, director of consumer research at the University of Michigan, said that consumer confidence improved for the first time in six months, up 16% from the previous month, but still around 20% lower than in December 2024. At that time, consumer confidence rebounded after the election. Furthermore, all five components of the index rose, with short-term and long-term expected business conditions rising particularly sharply, which is consistent with people's belief that tariff pressure has eased. Consumers seem to have recovered to some extent from the extremely high tariffs announced in April and the impact of policy swings in the weeks that followed. However, consumers still believe that the economy faces widespread downside risks. Their views on business conditions, personal finances, commodity purchases, the labor market, and the stock market are all far lower than six months ago in December 2024. Despite a marked improvement in the economy this month, consumers remain cautious and concerned about economic trends.

Joanne Hsu, director of consumer research at the University of Michigan, said that consumer confidence improved for the first time in six months, up 16% from the previous month, but still around 20% lower than in December 2024. At that time, consumer confidence rebounded after the election. Furthermore, all five components of the index rose, with short-term and long-term expected business conditions rising particularly sharply, which is consistent with people's belief that tariff pressure has eased. Consumers seem to have recovered to some extent from the extremely high tariffs announced in April and the impact of policy swings in the weeks that followed. However, consumers still believe that the economy faces widespread downside risks. Their views on business conditions, personal finances, commodity purchases, the labor market, and the stock market are all far lower than six months ago in December 2024. Despite a marked improvement in the economy this month, consumers remain cautious and concerned about economic trends.