The consumer sentiment index indicated a second consecutive month in the rise of consumer sentiment, per the University of Michigan’s closely watched survey of consumers.
Consumer sentiment rose 1.6% in July from 60.7 in June to 61.7—the second consecutive month of increases, according to the latest report. Year-over-year, consumer sentiment was down 7.1% from 66.4 in July 2024.
Joanne Hsu, director of the Surveys of Consumers at University of Michigan, explained that there is still uncertainty, given the changes in economic policy.
“This month’s median is below the peak reading from mid-2022, but the three-month-moving average is currently above mid-2022,” Hsu said. “Expectations exhibit substantial uncertainty, particularly in light of ongoing developments and changes with economic policy and concerns that impacts on inflation are still to come.”
Consumers’ view of current economic conditions rose by 4.9%, from 64.8 in June to 68 in July. Year-over-year, there was an 8.5% increase from the 62.7 in July 2024.
The consumer expectations index was down on both fronts, with a 0.7% month-over-month decline, from 58.1 in June to 57.7 in July. Year-over-year, there was a whopping 16.1% drop, from 68.8 in July 2024.
“Perceptions of this month’s economic developments were similar across the political spectrum; Republicans, Independents and Democrats all saw some minor increases in sentiment this month,” Hsu noted. “Although recent trends show sentiment moving in a favorable direction, sentiment remains broadly negative. Consumers are hardly optimistic about the trajectory of the economy, even as their worries have softened since April 2025.”
For the full report, click here.
