The University of Michigan released updated figures on Friday, indicating that U.S. consumer sentiment in July declined slightly less than initially estimated.
The revised report shows the consumer sentiment index for July at 66.4, an upward adjustment from the preliminary reading of 66.0. Economists had anticipated no change in the earlier estimate.
Despite this revision, July's consumer sentiment index still reflects a drop from June's reading of 68.2, marking the lowest level since November 2023.
"Sentiment has improved by 33% from the historic low of June 2022, but it remains cautious due to persistent high prices affecting particularly those with lower incomes," commented Joanne Hsu, Director of Surveys of Consumers.
"Labor market expectations continue to be relatively stable, offering ongoing support to consumer spending," she added. "However, the upcoming election could introduce volatility into economic attitudes in the coming months."
Further detail shows that the current economic conditions index declined to 62.7 in July from 65.9 in June, and the consumer expectations index slightly fell to 68.8 from 69.6.
Additionally, the report highlights that year-ahead inflation expectations dropped for the second consecutive month, decreasing to 2.9% in July from 3.0% in June.
Long-term inflation expectations remained steady at 3.0% in July, but are still somewhat higher compared to the 2.2-2.6% range observed in the two years prior to the pandemic.
