University of Michigan Releases Final Consumer Sentiment Results for July

On Friday, the University of Michigan released the final results of its Surveys of Consumers for July.

• The Index of Consumer Sentiment rose to 55.2 in July, up 11.5% from 49.5 in June. Year-over-year, the index was down 10.5% from 61.7 in July 2025.
• Current Economic Conditions increased to 54.8 in July, up 14.9% from 47.7 in June and down 19.4% from 68.0 in July 2025.
• The Index of Consumer Expectations rose to 55.4 in July, up 9.3% from 50.7 in June and down 4.0% from 57.7 in July 2025.

In remarks accompanying the release, Surveys of Consumers Director Joanne Hsu said:

“Consumer sentiment confirmed its early-month reading, landing almost 12% above June. Broad-based improvements were seen across all groups by income, education, wealth, age, and political party. Five-year expected business conditions reached a 12-month high, though it remains well under its historical average. Despite recent gains, sentiment is 11% below a year ago, reflecting a generally somber view of the economy amid five years of elevated inflation and persistent high prices. Consumers remain focused on pocketbook issues like purchasing power, while political or military developments remain more in the background. Interviews for this release spanned June 23 to July 27.

Year-ahead inflation expectations ticked down from 4.6% in June to a still-elevated 4.2% this month. The current reading substantially exceeds the 3.4% seen in February before the Iran conflict began, along with all 2024 readings. Long-run inflation expectations held steady from last month at 3.3%, remaining a bit higher than the 2.8–3.2% range seen in 2024.”