FX.co ★ US Consumer Sentiment Revised Higher to Five-Month High

The University of Michigan’s Consumer Sentiment Index was revised up to 55.2 in July 2026 from a preliminary estimate of 54.0, marking its highest reading since February, before the US–Iran conflict pushed gasoline prices higher. Sentiment strengthened across all income, age, education, wealth, and political groups. Consumers’ five-year outlook for business conditions rose to a 12‑month high, though it remained well below its long-run historical average. Despite the recent improvement, overall sentiment was still 11% lower than a year earlier, underscoring persistent concerns about elevated prices and the lingering impact of several years of high inflation. Year-ahead inflation expectations eased to 4.2% from 4.6% in June, while long-run expectations were unchanged at 3.3%. Survey interviews were conducted between June 23 and July 27.