Revised data released by the University of Michigan on Friday showed consumer sentiment in U.S. decreased by slightly less than initially estimated in the month of July.
The report said the consumer sentiment index for July was upwardly revised to 81.2 from a preliminary reading of 80.8 but remains below the June reading of 85.5. Economists had expected the index to be unrevised.
“The largest monthly declines remained concentrated in the outlook for the national economy and complaints about high prices for homes, vehicles, and household durables,” said Surveys of Consumers chief economist Richard Curtin.
He added, “While most consumers still expect inflation to be transitory, there is growing evidence that an inflation storm is likely to develop on the not too distant horizon.”
One-year inflation expectations jumped to 4.7 percent in July from 4.2 in June, while five-year inflation expectations were unchanged at 2.8 percent.
The report also showed the current economic conditions index fell to 84.5 in July from 88.6 in June, while the index of consumer expectations slid to 79.0 from 83.5.
A separate report released by the Conference Board earlier this week unexpectedly showed a slight improvement in its reading on consumer confidence in July.
The Conference Board said its consumer confidence index inched up to 129.1 in July from an upwardly revised 128.9 in June. Economists had expected the index to drop to 124.9 from the 127.3 originally reported for the previous month.
With the unexpected uptick, the consumer confidence index reached its highest level since hitting 132.6 in February of 2020.