US consumer sentiment improves in July

The University of Michigan's Surveys of Consumers reported that its Consumer Sentiment Index rose to a final reading of 55.2 in July, up from 54.4 earlier in the month and from 49.5 in June. Economists had forecast a dip to 54.0. The survey, conducted from June 23 to July 27, showed broad-based improvements across income, education, wealth, age, and political party groups. Despite average gasoline prices rising above $4 a gallon amid renewed Middle East hostilities, consumers' one-year inflation expectations fell to 4.2% from 4.6% in June, while five-year expectations held steady at 3.3%. Joanna Gleason, director of the Surveys of Consumers, noted that consumers remain focused on pocketbook issues like purchasing power, with political and military developments in the background. Government data earlier in the month indicated a moderation in consumer inflation in June.