Consumer confidence fell by 0.9 points in July to 72.3 according to the University of Michigan’s Consumer Sentiment Survey. A slight improvement in current conditions was not enough to offset the deterioration of the outlook for the future. This month’s deterioration is the second consecutive month that sentiment has fallen. The past two months have erased any gains made early in the year.
The assessment of current conditions rebounded in July, gaining 1.2 points for a reading of 82.7. This follows a fall of 5.7 points in June. Future expectations dropped a strong 2.2 points from June’s reading to 65.6 and now stands at its lowest level since December.
Inflationary expectations remain subdued, with one-year inflationary expectations dropping to 3.0% from 3.1%. Five-year inflationary expectations also fell from 2.8% to 2.7%.