U.S. consumer sentiment improved in July, with the Conference Board’s Consumer Confidence Index rising two points to 97.2. The result topped the median forecast of 96.0 and partially reversed June’s decline, whose reading was revised to 95.2 from 93.0. The gain was driven by the survey’s Expectations gauge, which climbed to 74.4—its strongest level since February—reflecting less pessimism about business conditions and employment prospects over the next six months. By contrast, the Present Situation measure slipped to 131.5 from 133.0, suggesting consumers see current conditions as slightly less favorable. Underlying labor-market sentiment continued to deteriorate. The Conference Board’s jobs differential—the share of respondents saying jobs are plentiful minus those finding them hard to get—fell for a seventh consecutive month to the lowest level since early 2017, signaling a cooling jobs market despite the uptick in overall confidence. “Pessimism about the future receded somewhat, leading to a slight improvement in overall confidence; however, consumers’ appraisal of current job availability weakened for the seventh consecutive month,” said Stephanie Guichard, senior economist at the Conference Board. Despite July’s rebound, the headline index remains about 11% below its December 2024 level, underscoring fragile sentiment as higher tariffs and a softer labor market offset the boost from easing inflation fears and rising equity prices.