Consumer Sentiment Jumps In July, But Confidence Remains Below Year-Ago Levels
By CU Today Staff —
ANN ARBOR, Mich.—Consumer sentiment rose sharply in July, climbing 11.5% from June as Americans grew more optimistic about business conditions and the economy, though confidence remains well below year-ago levels amid continued concerns over high prices, according to the University of Michigan's Surveys of Consumers.
The Index of Consumer Sentiment increased to 55.2 from 49.5 in June, while the Current Economic Conditions Index rose 14.9% to 54.8 and the Consumer Expectations Index gained 9.3% to 55.4. Surveys Director Joanne Hsu said improvements were broad-based across income, age, education and political groups, with consumers focused primarily on purchasing power rather than political or military developments. Despite the monthly gains, overall sentiment remains 10.5% below July 2025 levels.
Consumers also became somewhat less concerned about near-term inflation. One-year inflation expectations eased to 4.2% from 4.6% in June, although they remain above levels seen earlier this year, while long-run inflation expectations held steady at 3.3%. Hsu said the results suggest Americans continue to view the economy cautiously after several years of elevated inflation and persistently high prices.
Originally reported by CU Today.