University of Michigan Releases the Final Results of Its Consumer Sentiment Index for July

Posted on August 1, 2025

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

  • The Index of Consumer Sentiment increased to a reading of 61.7 in July, up from 60.7 in June. This is a month-over-month increase of 1.60% but 7.10% lower than a year ago (66.4 in July 2024).
  • Current Economic Conditions increased to a reading of 68.0 in July, up from 64.8 in June. This is a 4.90% month-over-month increase and 8.50% above a year ago (62.7 in July 2024).
  • The Index of Consumer Expectations is at a reading of 57.7 in July, down from 58.1 in June. This is a month-over-month decrease of 0.70% and 16.10% lower than a year ago (68.8 in July 2024).

In remarks prepared to accompany the report, Surveys of Consumers Director Joanne Hsu said:

“Consumer sentiment improved for the second straight month, inching up a scant single index point from June. Current conditions rose about 5% to its highest reading since February 2025, while the expectations index fell slightly. A rise in sentiment among stock holders was partially offset by a decline among consumers who do not own stocks. Perceptions of this month’s economic developments were similar across the political spectrum; Republicans, Independents, and Democrats all saw some minor increases in sentiment this month. Although recent trends show sentiment moving in a favorable direction, sentiment remains broadly negative. Consumers are hardly optimistic about the trajectory of the economy, even as their worries have softened since April 2025.

Year-ahead inflation expectations fell for a second straight month, plunging from 5.0% last month to 4.5% this month. This is the lowest reading since February 2025 but above December 2024 just after the election. Long-run inflation expectations receded for the third consecutive month, falling back from 4.0% in June to 3.4% in July. This is the lowest reading since January 2025 but, again, still considerably higher than the December 2024 reading.”

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