In July 2025, consumer sentiment in the United States, as measured by the University of Michigan, rose to 61.8, marking the highest level in five months. This figure represents an increase from June's 60.7 and surpasses the predicted 61.5, according to early estimates. The index assessing current economic conditions climbed to 66.8 from 64.8, while the expectations index edged up to 58.6 from 58.1. Short-term business conditions saw an approximately 8% improvement, even as anticipated changes in personal finances dipped by about 4%. Meanwhile, inflation expectations for the coming year declined for the second month in a row, easing to 4.4% from 5% in June. Long-term inflation expectations also decreased for the third consecutive month, lowering to 3.6% from 4%. Despite these declines, both inflation indices are at their lowest since February, yet remain higher than those seen in December 2024, reflecting ongoing consumer concern about potential future inflationary risks.