US inflation expectations ease a tad in July, University of Michigan says

(Sharecast News) - Consumer sentiment in the US remained little changed in July, although expectations for price gains did ease a tad, the results of a closely followed survey showed. The University of Michigan's consumer confidence index for the month of July dipped from May's reading of 68.2 to 66.0 for June.

Economists had pencilled in a slight rise to 68.5.

The survey's director, Joanne Hsu, said that while the index was 30% above its June 2022 trough, it remained "stubbornly subdued".

Americans continued to complain about high prices, despite still expecting that they would moderate further in coming years.

Regarding the November elections, she said: "With the upcoming election, consumers perceived substantial uncertainty in the trajectory of the economy, though there is little evidence that the first presidential debate altered their economic views."

A sub-index linked to inflation expectations one year ahead slipped again, to 2.9%, versus a range of 2.3-2.9% over the two years prior to the pandemic.

Another sub-index tracking long-run inflation expectations also fell back to 2.9%, but remained above their pre-pandemic range of 2.2-2.6%.