Consumers expressed a less pessimistic outlook on the economy and potential inflation increases in early June, buoyed by possible advancements in the global trade war, according to a University of Michigan survey released Friday.

The Surveys of consumers, a closely monitored indicator from the University of Michigan, revealed widespread recoveries from previous negative readings. Survey participants also significantly lowered their expectations for short-term inflation.

The headline index of consumer sentiment reached 60.5,surpassing the Dow Jones estimate of 54 and marking a 15.9% increase from the prior month. The current conditions index rose by 8.1%,while the future expectations measure jumped by 21.9%.

These shifts occurred alongside a softening in the heated rhetoric surrounding President Donald Trump‘s tariffs. Following his April 2 “liberation day” declaration, Trump eased his threats and initiated a 90-day negotiation period, which appears to be yielding progress, especially with China, a major trade partner.

According to Joanne Hsu, survey director, “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. However, consumers still perceive wide-ranging downside risks to the economy.”

Though, all sentiment indexes remained considerably below their levels from a year prior, as consumers remain concerned about the potential impact of tariffs on prices, along with various geopolitical issues.

Regarding inflation, the one-year outlook decreased from levels not seen as 1981.