Preliminary University of Michigan data shows sentiment improved sharply in July, with inflation expectations easing slightly.
US consumer sentiment climbed to 54.4 in July, up from 48.9 in June and above the 51.0 forecast. The increase reflects broad improvements in both current conditions and future expectations, which rose to 54.9 and 54.2, respectively, surpassing estimates.
The prior month’s sentiment stood at 48.9, with conditions at 48.4 and expectations at 49.3. One-year inflation expectations dipped to 4.2% from 4.6%, while five-year expectations held steady at 3.3%.
The report noted that political factors have increasingly influenced sentiment, reducing its predictive value for consumer spending.