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Economic news
26.07.2024

U.S. consumer sentiment worsens slightly less than initially estimated in July

The final reading for the July Reuters/Michigan index of consumer sentiment came in at 66.4 compared to the flash reading of 66.0 and the June final reading of 68.2. Still, this was the lowest reading in eight months.

Economists had expected the indicator to stay unrevised at 66.0.

The details of the latest Surveys of Consumers of the University of Michigan revealed that the index of current economic conditions dropped by 4.9 per cent m-o-m to 62.7 this month while the index of consumer expectations fell by 1.1 per cent m-o-m to 68.8.

The report also revealed that the year-ahead inflation expectations slipped from 3.0 per cent in June to 2.9 per cent in July, in line with the preliminary estimates. This marked the lowest reading in four months. Meanwhile, the 5-year inflation expectations held steady at 3.0 per cent compared to the preliminary estimates of 2.9 per cent.

Commenting on the latest results, Joanne Hsu, Surveys of Consumers Director, noted that, sentiment is guarded as high prices continue to drag down attitudes while labour market expectations remain relatively stable, providing continued support to consumer spending. “However, continued election uncertainty is likely to generate volatility in economic attitudes in the months ahead,” she added.

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