A report from
the University of Michigan revealed on Friday that the preliminary reading for
the Reuters/Michigan index of consumer sentiment dropped 3.2 per cent m-o-m to 66.0
in early July. This marked the lowest reading since November 2023 (61.3).
Economists had expected
the indicator to advance to 68.5
this month from the June final
reading of 68.2.
According to
the report, the index of current economic conditions fell 2.7 per cent m-o-m to 64.1 in July, while the index of
consumer expectations declined 3.4 per cent m-o-m to 67.2.
The report also
revealed that the estimates of year-ahead expected inflation slipped from 3.0
per cent in June to 2.9 per cent
early this month, the lowest level since March (2.9 per cent). The 5-year expected inflation also decreased from 3.0 per cent to 2.9 per cent, the lowest level in four
months.
Commenting on
the latest findings, Surveys of Consumers Director Joanne Hsu noted that nearly
half of consumers still object to the impact of high prices, even as they
expect inflation to continue moderating in the years ahead. “With the upcoming
election, consumers perceived substantial uncertainty in the trajectory of the
economy, though there is little evidence that the first presidential debate
altered their economic views,” she added.