(RTTNews) - Consumer sentiment in the U.S. has unexpectedly deteriorated in the month of July, according to preliminary data released by the University of Michigan on Friday.
The report said the consumer sentiment index fell to 66.0 in July from 68.2 in June. Economists had expected the index to inch up to 68.5.
With the unexpected decrease, the consumer sentiment index dropped to its lowest level since hitting 61.3 in November 2023.
"Although sentiment is more than 30% above the trough from June 2022, it remains stubbornly subdued," said Surveys of Consumers Director Joanne Hsu. "Nearly half of consumers still object to the impact of high prices, even as they expect inflation to continue moderating in the years ahead."
She added, "With the upcoming election, consumers perceived substantial uncertainty in the trajectory of the economy, though there is little evidence that the first presidential debate altered their economic views."
The University of Michigan said the current economic conditions index dipped to 64.1 in July from 65.9 in June, while the index of consumer expectations slid to 67.2 in July from 69.6 in June.
Meanwhile, the report said year-ahead inflation expectations fell for the second straight month, edging down to 2.9 percent in July from 3.0 percent in June.
Long-run inflation expectations also dipped to 2.9 percent in July from 3.0 percent in June but remain somewhat elevated relative to the 2.2-2.6 percent range seen in the two years pre-pandemic.
