US consumer sentiment falls to 8-month low in July
- Preliminary reading shows sentiment index has fallen
- Compared to a year ago, the sentiment was down by 7.7%
- Analyst: Sentiment up 30% from June 2022 but remains 'stubbornly subdued'
FILE – A shopper passes a display of televisions at a Costco warehouse on April 29, 2024, in Lone Tree, Colo. On Friday May 10, 2024, the University of Michigan releases its preliminary reading of consumer sentiment for May. (AP Photo/David Zalubowski, File)
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(NewsNation) — U.S. consumer sentiment declined to 66 in July from 68.2, marking its lowest level in eight months, according to a preliminary report from the University of Michigan released Friday.
Economists surveyed by Bloomberg had anticipated a slight increase to 68.5. Compared to a year ago, the sentiment was down by 7.7%, per the preliminary report.
According to University of Michigan data, the index’s current conditions component dropped 2.7% to 64.1 from the previous month, while the consumer expectations index fell 3.4% to 67.2.
“Although sentiment is more than 30% above the trough from June 2022, it remains stubbornly subdued,” Joanne Hsu, director of the survey, said in a statement. “Nearly half of consumers still object to the impact of high prices, even as they expect inflation to continue moderating in the years ahead.”
Additionally, year-ahead inflation expectations dropped for the second consecutive month to 2.9% in July from 3.0% in June, the report said.
Long-run inflation expectations also dropped to 2.9% in July from 3.0% in June, although they remain somewhat elevated compared to the 2.2-2.6% range observed in the two years before the pandemic.
