All NewsEducationTV
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
Story archiveAll categories
← All Stories

US consumer sentiment rises in July, beating forecasts

Created at 31 Jul · 2:21 PM1 source↑ Market-relevant
IN SHORT

U.S. consumer sentiment saw a notable improvement in July, with the University of Michigan's final sentiment index reaching 55.2, surpassing economists' expectations. Despite lingering concerns over the cost of living and rising gasoline prices, consumers reported broad-based optimism across various demographics.

✉Newsletter

PiQ Daily

Pick your topics. Get only what matters, on your cadence.

Key Numbers

55.2final consumer sentiment index reading in July
54.4preliminary consumer sentiment index reading in July
49.5consumer sentiment index reading in June
54.0Reuters poll forecast for final July sentiment index
4.2%expected inflation over next year
4.6%expected inflation over next year in June
3.3%expected inflation over next five years
$4average gasoline price per gallon

Who's Involved

University of Michigan's Surveys of Consumers
conducted the survey on consumer sentiment
Joanne Hsu
Director of the Surveys of Consumers

↳ Why This Matters

Improved consumer sentiment can signal increased consumer spending, a key driver of economic growth, and suggests that consumers are becoming more optimistic about their financial situations despite persistent cost-of-living concerns.

Key facts

  • U.S. consumer sentiment increased in July, with the University of Michigan's final index at 55.2.
  • The July reading surpassed economists' expectations of 54.0.
  • Consumers reported broad-based improvements across income, education, age, and political party.
  • Inflation expectations for the next year fell to 4.2% from 4.6%.

U.S. consumer sentiment improved in July, reaching a final reading of 55.2, according to the University of Michigan's Surveys of Consumers. This figure surpassed the 54.4 recorded earlier in the month and the 49.5 from June, as well as economists' forecasts of 54.0. The survey, conducted between June 23 and July 27, indicated broad-based gains across all demographic groups, including income, education, age, and political affiliation. Despite average gasoline prices rising above $4 a gallon due to renewed Middle East hostilities, consumers remained focused on pocketbook issues, with political and military developments taking a backseat. Inflation expectations for the next year decreased to 4.2% from 4.6% in June, while expectations for the next five years remained steady at 3.3%.

Frequently asked questions

It is a monthly survey that measures how optimistic or pessimistic consumers are about the state of the economy and their personal finances.

Broad-based improvements were seen across various demographics, with consumers focusing on pocketbook issues. Lingering concerns about the cost of living and rising gasoline prices were present but did not prevent an overall increase in sentiment.

The final reading of 55.2 exceeded economists' forecasts, which had predicted a dip to 54.0.

What Happens Next

01Monitor future consumer sentiment surveys for sustained improvement or reversal.

Get the newsletter.

Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.

Cadence
CME Headlines
  • Japanese Yen futures surged on suspected intervention.
    30 Jul · 9:28 PM
  • Japanese Yen futures surged on suspected intervention.
    30 Jul · 9:28 PM
  • 10-Year T-Note futures fell as long-end yields surged.
    30 Jul · 9:28 PM

How It Developed

The University of Michigan's Consumer Sentiment Index rose to a final reading of 55.2 in July.
This figure exceeded economists' forecasts of 54.0.
The July reading showed an increase from 54.4 earlier in the month and 49.5 in June.
Improvements were observed across all demographic groups.
Consumers remained focused on pocketbook issues, with political and military developments in the background.
Expectations for one-year inflation dropped to 4.2% from 4.6%, while five-year expectations held at 3.3%.

Sources

T1
US consumer sentiment perks up in JulyReuters

Related Stories

UK business morale hits four-month high in July
30 Jul · 11:08 PM
Euro zone inflation ticks up in July, bolstering rate hike case
31 Jul · 9:07 AM
Yen pares intervention gains as Asian tech shares surge
30 Jul · 9:16 PM
French inflation holds steady at 1.0% in July
31 Jul · 6:51 AM
Canadian economy grew 0.3% in May, exceeding expectations
31 Jul · 12:35 PM