US Consumer Confidence Shows Promising Growth in July

In a surprising turn of events, the Consumer Sentiment Index in the United States experienced a 1.8% increase in July, surpassing analysts' forecasts to reach 61.8, according to a preliminary report released by the University of Michigan. This marks a significant improvement from the previous month, despite a 6.9% decline on an annual basis.

Economic Conditions and Consumer Expectations

The Current Economic Conditions Index saw a 3.1% monthly rise, standing at 66.8 in July, alongside a 6.5% year-on-year jump. Conversely, the Index of Consumer Expectations edged up by 0.9% from June but faced a 14.8% drop compared to July 2024, settling at 58.6.

Inflation Expectations Take a Dive

"Year-ahead inflation expectations have decreased for the second consecutive month, sharply falling from 5.0% to 4.4%. Similarly, long-run inflation expectations have declined for the third month in a row, from 4.0% in June to 3.6% in July," the university highlighted in its report. These figures represent the lowest points since February 2025.