UoM consumer sentiment rises above expectations

University of Michigan’s consumer sentiment has slightly rebounded in July. The University of Michigan final sentiment came in a little bit stronger than estimate and higher than the preliminary. However, the data still remains near historic low levels.

Current conditions were also higher and above last month 57.1. The expectations Index however remained near preliminary and last month levels.

Inflation is still elevated but a little lower than the preliminary 5.3% for the one year. The 5 year inflation expectations came in at 2.9% which was lower than the preliminary estimate of 3.1%

The final July reading showed little change in consumer sentiment from its historic low in June. The one-year economic outlook fell to its lowest reading since 2009. At the same time, concerns over global factors have eased somewhat. This easing provided some limited support to buying conditions for durables, which remained near the all-time low reached last month, as well as a modest retreat in long run inflation expectations.