Having rebounded from record (46 year) lows in June, University of Michigan's preliminary July Sentiment survey was expected to show further improvement as gas prices fell since the US-Iran 'peace' MoU signing (before rising modestly in the last few days of the reignited conflict).
And indeed it did, headline Consumer Sentiment jumped from 49.5 to 54.4 (51.0 exp) - its highest since February...
"With the second straight month of 10% jumps," said UMich Dirctor of Surveys, Joanne Hsu, pointing out that "consumer sentiment climbed to its highest reading since February of this year on the basis of easing price pressures at the pump in recent weeks."
All five index components improved, led by significant 20% increases in buying conditions for durables as well as year-ahead business conditions.
This month’s rise in sentiment was pervasive across the population, seen across groups by age, income, wealth, and political party.
Particularly strong increases were seen among consumers without a bachelor’s degree.
Year-ahead inflation expectations ticked down from 4.6% in June to a still-elevated 4.2% this month.
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