According to the University of Michigan consumer sentiment index, consumer sentiment stood at 51.5 in July. The July reading was 1.5 points higher than the historically low June reading and 29.7 points lower than the July 2021 index. The index of current economic conditions rose 4.3 points from the previous month to 58.1 and was 26.4 points below the July 2021 index. The consumer expectations index fell 0.2 points to 47.3 and was 31.7 points lower than a year ago.
“The latest July reading showed little change in consumer sentiment from June’s all-time low. The one-year economic forecast fell to its lowest level since 2009. At the same time, concerns about global factors have somewhat weakened. This easing provided some limited support to purchasing conditions for durable goods, which remained close to the all-time lows reached last month, as well as a modest reduction in long-term inflation expectations. However, inflation continued to dominate among consumers and labor market expectations continued to decline. The sentiment index this month was the second lowest on record, and the slowdown in personal consumer spending in the second quarter was no surprise. The final July average expected year-ahead inflation was 5.2%, little changed from mid-month or the previous two months. Longer-term expectations came in at 2.9%, staying in the 2.9-3.1% range seen over the past 11 months,” said Joanne Hsu, director of UM Surveys of Consumers.
Read University of Michigan consumer research liberation.