U.S. consumer sentiment rose slightly in early July, reaching a five-month high of 61.8, according to preliminary data from the University of Michigan Survey of Consumers. Despite the modest improvement, sentiment remains 16% below December 2024 levels and continues to lag behind its historical average.
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The survey reported an 8% increase in views on short-term business conditions, while expectations for personal finances declined by 4%. According to Joanne Hsu, Director of the Survey of Consumers, "consumers are unlikely to regain their confidence in the economy unless they feel assured that inflation is unlikely to worsen."
Inflation expectations for the year ahead dropped from 5.0% in June to 4.4% in July, while long-term expectations fell from 4.0% to 3.6%, both marking the lowest levels since February 2025. However, these figures still remain above December 2024's readings, suggesting continued public concern over inflation risks.
Hsu noted that recent policy developments, including the passage of a new tax and spending bill, had little apparent impact on sentiment. Stabilisation in trade policy was identified as a key factor in potentially restoring consumer confidence in the months ahead.
Source: www.floordaily.net
