index consumer sentiment from the University of Michigan is up a point and a half in July to 51.5 pointsimproving the 50 of June and the 51.1 expected by the market consensus.
The final reading for July showed little change in consumer sentiment from its record low in June. The One-year economic outlook fell to its lowest reading since 2009. At the same time, concern about global factors has subsided somewhat. This easing provided limited support to durable goods purchasing conditions, which remained near the record low reached last month, as well as a modest reversal in long-term inflation expectations. However, inflation continued to dominate consumers’ attention, and labor market expectations continued to soften.
This month’s sentiment index registered the second lowest reading on record, and the slowdown in personal consumption spending in the second quarter was not a surprise. July’s final reading of the median expected inflation rate for the year was 5.2%, little changed from mid-month or the previous two months. Long-term expectations stood at 2.9%, remaining within the range of 2.9-3.1% seen in the last 11 months.
Source: Fx Street
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