WASHINGTON (AP) — Consumer sentiment increased in June for the first time in six months, the latest sign that Americans’ views of the economy have improved as inflation has stayed tame and the Trump administration has reached a truce in its trade dispute with China.

The new preliminary reading of the University of Michigan’s consumer sentiment index jumped 16 percent from 52.2 to 60.5.

The large increase followed steady drops that left the preliminary number last month at the second-lowest level in the nearly 75-year history of the survey. Consumer sentiment is still down 20 percent compared with December 2024.

“Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed,” Joanne Hsu, director of the survey, said in a written statement. “However, consumers still perceive wide-ranging downside risks to the economy.”

The Conference Board’s consumer confidence index, released in late May, also increased after five straight declines that were linked to uncertainty about President Donald Trump’s new tariffs.