The University of Michigan’s Consumer Sentiment Index climbed to 61.7 in July, marking its second monthly increase. However, the reading still fell short of the 62.0 projection.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
“Although recent trends show sentiment moving in a favorable direction, sentiment remains broadly negative,” said Surveys of Consumers Director Joanne Hsu, adding that consumers do not have much confidence in the trajectory of the economy.
Consumers Expect Lower Inflation
Furthermore, year-ahead inflation expectations fell for a second straight month and were 4.5% in July compared to 5.0% in June. 4.5% marks the lowest reading since February 2025 but is still above December 2024 levels. On top of that, long-run inflation expectations dropped to 3.4% in July compared to 4.0% in June.
Despite lower inflation expectations, the Fed voted 9-2 to maintain interest rates between 4.25% and 4.50% at the Federal Open Market Committee (FOMC) earlier this week.
Track the latest financial data updates and key events with TipRanks’ Economic Calendar.
