(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.