Early July Consumer Sentiment Relatively Flat from June, Down 7.7% YOY

Ann Arbor, MI, July 12, 2024-Consumer sentiment declined 3.2% to 66.0, according to preliminary results from the University of Michigan Survey of Consumers.

This represents a 7.7% decline year over year.

“For the second straight month, consumer sentiment is essentially unchanged. July's reading was a statistically insignificant two index points below last month, well within the margin of error,” says Survey of Consumers director Joanne Hsu. “Although sentiment is more than 30% above the trough from June 2022, it remains stubbornly subdued. Nearly half of consumers still object to the impact of high prices, even as they expect inflation to continue moderating in the years ahead. 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.

“Year-ahead inflation expectations fell for the second consecutive month, reaching 2.9%. In comparison, these expectations ranged between 2.3 to 3.0% in the two years prior to the pandemic. Long-run inflation expectations came in at 2.9%, down from 3.0% last month and remaining remarkably stable over the last three years. These expectations remain somewhat elevated relative to the 2.2-2.6% range seen in the two years pre-pandemic.”