Topline
Consumer sentiment improved above expectations last month to a five-month high as Americans appear to be less worried about inflation—even as it spiked this month—according to the University of Michigan’s monthly survey released Friday, though those polled still see a “substantial risk” inflation could rise in the future.
While inflation expectations have improved, consumers still foresee a “substantial risk” that … More
Key Facts
A preliminary reading of the University of Michigan’s consumer sentiment survey was 61.8, above June’s reading of 60.7 and slightly above the Dow Jones estimate for 61.4, the strongest sentiment level since February (64.7).
The year-ahead inflation expectations concerns fell for the second-straight month, dropping from 5% in June to 4.4% in July, while long-term concerns decreased for the third-consecutive month from 4% in June to 3.6% in July, suggesting consumers have become less worried about inflation in recent months.
Meanwhile, inflation rose year-over-year to 2.7% in June, above average economist estimates of 2.6%, while core consumer prices had a 3% annual increase.
Both the year-ahead and long-term predictions for inflation in the Michigan survey are the lowest since February, but still higher than from December, surveyors noted, indicating consumers “still perceive substantial risk that inflation will increase in the future.”
This is a developing story.
Source: https://www.forbes.com/sites/tylerroush/2025/07/18/consumer-confidence-hits-five-month-high-despite-rising-inflation/