Consumer Sentiment was 51.5 in July, according to the University of Michigan Consumer Sentiment Index. July’s figure was 1.5 points higher than the historically low June reading and is 29.7 points below the July 2021 index. The Current Economic Conditions Index rose 4.3 points from the previous month to 58.1 and is 26.4 points below the July 2021 index. The Consumer Expectations Index decreased 0.2 points to 47.3 and is 31.7 points lower from a year ago.
“The final July reading showed little change in consumer sentiment from its historic low in June. The one-year economic outlook fell to its lowest reading since 2009. At the same time, concerns over global factors have eased somewhat. This easing provided some limited support to buying conditions for durables, which remained near the all-time low reached last month, as well as a modest retreat in long run inflation expectations. However, inflation continued to dominate consumers’ attention, and labor market expectations continued to soften. This month’s Sentiment Index was the second lowest reading on record, and the Q2 slowdown in personal consumption expenditures was no surprise. The final July reading of the median expected year-ahead inflation rate was 5.2%, little changed from mid-month or the preceding two months. Long run expectations came in at 2.9%, remaining within the 2.9-3.1% range seen in the past 11 months” said Joanne Hsu, Director of UM Surveys of Consumers.
Read the University of Michigan Surveys of Consumers release.