US July University of Michigan Consumer Sentiment Index at 55.2... Highest in 5 Months

Economic sentiment among US consumers continued to improve for the second consecutive month in July.

The University of Michigan announced on the 31st (local time) that the final July Consumer Sentiment Index, which reflects consumer confidence in the economy, stood at 55.2.

This represents an 11.5% increase from the previous month (49.5), marking the highest level in five months since February (56.6).

It also exceeded the expert forecast compiled by Dow Jones (54.0).

US consumer sentiment deteriorated following the outbreak of the US-Iran war in late February, dropping to an all-time low in May, before rebounding in June driven by stabilizing oil prices.

The Current Economic Conditions Index, which reflects the present economic situation, improved from 47.7 in June to 54.8 in July, while the Consumer Expectations Index, indicating future outlooks, rose from 50.7 to 55.4 over the same period.

Joanne Hsu, the director in charge of the survey, said, "Consumer sentiment improved broadly across all groups regardless of income, education, wealth, age, or political affiliation."

She explained, "Consumers continue to focus on economic issues such as purchasing power, while political or military situations have taken a back seat."

However, compared to July of last year (61.7), the consumer sentiment index remains 10.5% lower.

Meanwhile, US consumers' one-year-ahead inflation expectations fell from 4.6% in June to 4.2%.

The five-year inflation expectations, reflecting consumers' long-term inflation outlook, remained unchanged at 3.3%.

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.