On July 18, as expectations for the economy and inflation continue to improve, the U.S. Consumer Confidence Index rose to a 5-month high in early July. Data released by the University of Michigan on Friday showed that the Consumer Confidence Index's preliminary value for July increased from 60.7 a month ago to 61.8. However, this figure remains lower than the level throughout last year.
Consumers expect the year-on-year price increase over the next year to be 4.4%, lower than last month's 5%, which is the lowest level since February this year. They anticipate an inflation growth rate of 3.6% over the next 5 to 10 years, also the lowest in 5 months. Meanwhile, concerns about tariffs continue to limit optimism about economic prospects.
The survey director, Joanne Hsu, stated in a statement: "Consumers' expectations for business conditions, the labor market, and even their own income are weaker than a year ago. That said, the rise in confidence over the past two months indicates that consumers believe the risk of the worst scenarios they expected in April and May has eased. However, announcements of tariff increases or rising inflation could suppress market sentiment." (Jinshi)
