US Consumer Pulse Survey: Consumer Sentiment Improves, but Inflation Concerns Persist

Research evidence excerpt

US Consumer Pulse Survey: Consumer Sentiment Improves, but Inflation Concerns Persist

Foundation

June 29, 2026 04:00 AM GMT

Morgan Stanley & Co. LLCMThematic Alpha | North America Michelle M. Weaver, CFA

Equity Strategist

US Consumer Pulse Survey: Michelle.M.Weaver@morganstanley.comKatie Solovieva +1 212 296-5254

Data Analyst

Katie.Solovieva@morganstanley.com +1 212 761-6753

Consumer Sentiment Improves, Anna Feldman

Anna.Feldman@morganstanley.com +1 212 761-3784

but Inflation Concerns Persist Stephen C Byrd

Equity Analyst

Stephen.Byrd@morganstanley.com +1 212 761-3865

• Consumer confidence continues to recover gradually, with the net U.S.M

economic outlook improving to -10%, up from -14% last month and -18% two

months ago. Thirty-four percent of consumers now expect the economy to

improve over the next six months, while 44% expect it to worsen and 22%

expect conditions to remain unchanged.

• Household-finance sentiment improved more notably, though inflation

remains the dominant concern. The net household-finances outlook rose to

+24%, up from +19% last month and +12% two months ago, as 46% of

consumers expect their finances to improve over the next six months versus

22% expecting deterioration. Inflation was cited as a top concern by 60% of

consumers, the highest level this year, while concerns around the U.S.

political environment, rent/mortgage payments, and debt repayment also

edged higher.

• Spending intentions remain broadly stable, with essentials outperforming

discretionary categories. Groceries, gas, and household items continue to

show net positive spending intentions, while consumer electronics,

computers, and alcohol remain comparatively weaker. Gas remains a relative

area of strength amid elevated prices, though expectations point to