US Consumer Confidence Hits Five-Month High
US consumer sentiment rose to its highest level in five months in July, supported by a brighter economic outlook and gasoline prices that remained below their wartime peaks.
The University of Michigan’s final consumer sentiment index increased to 55.2, improving from the preliminary estimate of 54.4. The survey was conducted between June 23 and July 27, when households briefly benefited from lower gasoline prices before renewed Middle East tensions pushed fuel costs higher again.
Survey Director Joanne Hsu said consumers remained focused on issues that directly affect household finances, including purchasing power and the cost of living. Despite the latest improvement, overall sentiment was still 11% lower than a year earlier, showing that households remained cautious about the economy.
High prices have not completely stopped consumers from spending. Inflation-adjusted consumer spending rose 0.4% in June, matching the strongest increase in nearly a year. The gauge measuring conditions for buying durable goods also climbed to its highest level since October.
Sentiment improved across income groups, age categories, education levels, and political affiliations. Expectations for the longer-term economic outlook reached a one-year high, while one-year inflation expectations eased to 4.2%.
Source : Newsmaker.id
