US Consumer Sentiment Edges Up in July as Long-Term Inflation Views Ease

U.S. consumer confidence ticked higher for a second consecutive month in July, according to the University of Michigan’s final Surveys of Consumers. The overall sentiment index rose to 61.7 from 60.7 in June, its best reading since February, reflecting a modest improvement in households’ assessment of the economy. The survey’s gauge of current economic conditions climbed to 68.0, surpassing the consensus estimate of 67.1 and June’s 64.8. By contrast, the expectations index slipped to 57.7, slightly below forecasts but broadly in line with the prior month’s 58.1, suggesting lingering caution about the outlook even as day-to-day assessments brighten. Inflation expectations continued to ease. Respondents now see prices rising 4.5% over the next year, down half a percentage point from June and matching the lowest level since February. Five- to ten-year inflation expectations fell to 3.4%, the third straight monthly decline and below both the anticipated 3.6% and June’s 4.0% reading.