Consumer sentiment in the U.S. deteriorated by less than initially estimated in the month of July, the University of Michigan revealed in a report released on Friday.
The report said the consumer sentiment index for July was upwardly revised to 97.9 from the preliminary reading of 97.1. Despite the upward revision, the index was still down from 98.2 in June.
“Concerns about tariffs greatly accelerated in the July survey,” said Surveys of Consumers chief economist, Richard Curtin. “Across all households, 35% spontaneously mentioned that the tariffs would have a negative economic impact in July, up from 21% in June and 15% in May.”
He added, “Consumers who had negative concerns about the tariffs voiced a much more pessimistic economic outlook, had inflation expectations that were 0.6 percentage points higher than those who hadn’t mentioned tariffs, and were more likely to anticipate that the unemployment rate would rise during the year ahead.”
The report said the index of current economic conditions fell to 114.4 in July from 116.5 in June, while the index of consumer expectations ticked up to 87.3 from 86.3.
On the inflation front, one-year inflation expectations edged down to 2.9 percent in July from 3.0 percent in June and five-year inflation expectations dipped to 2.4 percent from 2.6 percent.