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%.