U.S. consumer sentiment virtually unchanged in July
The widely watched consumer sentiment index inched up marginally to 61.8 from the previous month's 60.7.
While sentiment reached its highest value in five months, it remains a substantial 16 percent below December 2024 and is well below its historical average, the report found.
Short-run business conditions improved about 8 percent, whereas expected personal finances fell back about 4 percent.
"Consumers are unlikely to regain their confidence in the economy unless they feel assured that inflation is unlikely to worsen, for example if trade policy stabilizes for the foreseeable future," said Joanne Hsu, director of the University of Michigan's monthly Surveys of Consumers.
"At this time, the interviews reveal little evidence that other policy developments, including the recent passage of the tax and spending bill, moved the needle much on consumer sentiment," Hsu said.
Year-ahead inflation expectations fell for a second straight month, plunging from 5 percent last month to 4.4 percent this month.
Long-run inflation expectations receded for the third consecutive month, falling back from 4 percent in June to 3.6 percent in July.
Both readings are the lowest since February 2025 but remain above December 2024, "indicating that consumers still perceive substantial risk that inflation will increase in the future," Hsu said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
Turkmen president proposes global hydrogen energy program at UN conference
ASHGABAT, Aug. 6 (Xinhua) -- Turkmen President Serdar Berdimuhamedov has proposed launching a global program for the transition to hydrogen energy covering the period 2030-2040. Speaking at the Third United Nations Conference on Landlocked Developing Countries (LLDC3) on Tuesday, Berdimuhamedov suggested beginning discussions in 2026 on developing the program under the UN framework. He emphasized Turkmenistan's consistent support for expanding practical cooperation in renewable energy and expressed the country's readiness to contribute to hydrogen energy development. Clear joint plans and coordinated mechanisms are needed to achieve this, he noted. Berdimuhamedov also stressed that Turkmenistan operates in the international energy space in full accordance with UN-adopted documents and advocates for strict adherence to international environmental standards and climate agreements. The LLDC3 is being held from Aug. 5 to 8 in Turkmenistan's National Tourist Zone of Awaza. The event has drawn heads of state and government, senior officials from over 100 countries, and representatives of around 50 international organizations and more than 20 major companies.
The Star
an hour ago
- The Star
Sweden cuts 2025 growth forecast to 0.7 pct amid export weakness
HELSINKI, Aug. 6 (Xinhua) -- The Swedish National Institute of Economic Research (NIER) on Wednesday revised its 2025 growth forecast for the Swedish economy downward, from 0.9 percent to 0.7 percent. In a statement, NIER cited continued global economic weakness and uncertainty surrounding U.S. trade policy as key factors dampening Sweden's economic prospects. Alongside the subdued global cycle, U.S. tariffs are expected to constrain Swedish export growth this year and next, the agency noted. NIER emphasized the increasing importance of domestic demand in driving Sweden's economic recovery. According to Statistics Sweden, the country's GDP grew by a modest 0.1 percent in the second quarter of 2025 compared to the previous quarter, largely due to restrained household spending. Looking ahead, NIER expects lower interest rates and rising real incomes to gradually boost private consumption and support an economic rebound later in the year. The Swedish central bank, Riksbank, lowered its policy rate to 3 percent in June and is projected to cut it further to 1.75 percent in September, NIER said during a press conference. NIER operates under the Ministry of Finance and is responsible for providing independent economic analyses and forecasts for both the Swedish and global economies.
The Star
2 hours ago
- The Star
Kenya to leverage sports to boost tourism sector
NAIROBI, Aug. 6 (Xinhua) -- Kenya said on Wednesday that it will harness the power of sports to boost the tourism sector, underscoring the country's commitment to diversifying the sector beyond wildlife and beach products. Cabinet Secretary in the Ministry of Tourism and Wildlife Rebecca Miano told journalists in Nairobi, the capital of Kenya, that the East African nation will be promoted as a premier tourist destination by aligning the country's prowess in athletics, rugby, and other sports endeavors with tourism promotion efforts. "We also have world-class sports facilities that appeal to international visitors," Miano said during the signing ceremony of a partnership between state-owned Kenya Tourism Board (KTB) and the Football Kenya Federation. According to data from the tourism ministry, Kenya received 2.4 million foreign visitors in 2024, making it one of the main sources of foreign exchange alongside tea and horticulture. June Chepkemei, chief executive officer of the KTB, noted that Kenya has already experienced an upsurge of international sports visitors as a result of co-hosting the 2024 CAF African Nations Championship together with Tanzania and Uganda, which kicked off on Aug. 2. Chepkemei added that the football tournament offers Kenya an opportunity to showcase its tourist products to a continental audience.
