Updated
Updated · Los Angeles Times · Jul 31
US Consumer Sentiment Hits 55.2 in July as Spending Rises 0.4%
Updated
Updated · Los Angeles Times · Jul 31

US Consumer Sentiment Hits 55.2 in July as Spending Rises 0.4%

3 articles · Updated · Los Angeles Times · Jul 31

Summary

  • The University of Michigan’s final July sentiment index rose to 55.2 from a preliminary 54.4, reaching a five-month high as Americans kept spending despite persistent price pressure.
  • Gasoline prices falling to their lowest since March during most of the survey period helped lift the outlook, and views on the longer-term economy climbed to a one-year high.
  • June inflation-adjusted consumer spending increased 0.4%—matching the strongest gain in nearly a year—while a gauge of durable-goods buying conditions reached its highest since October.
  • Consumers still sounded cautious: sentiment remained 11% below a year earlier, though one-year inflation expectations eased to 4.2% and longer-run expectations held at 3.3%.
  • Across income, age, education and party lines, sentiment improved, while respondents increasingly cited artificial intelligence as a factor—negative on net because of job-market concerns.

Insights

Why are Americans feeling more optimistic and spending heavily even as economic growth slows and household savings dwindle?
What hidden factors are anchoring long-term inflation expectations while everyday grocery costs continue to squeeze household budgets?