Consumer Sentiment Falls in July

Ann Arbor, MI, July 30, 2010--U.S. consumer sentiment fell in July to its lowest level in nine months, according to the Thomson Reuters/University of Michigan's Surveys of Consumers.

The survey's final July reading on the overall index on consumer sentiment dropped to 67.8 from 76.0 in June. This compared with an early July figure of 66.5 and a median forecast of 67.0 among economists.

July's reversal in consumer sentiment was dramatic after it hit its strongest level nearly 2-1/2 years last month, prompted by hopes of better job and credit conditions.

"Rather than an economy gaining strength, consumers now anticipate a slowing pace of growth, and rather than economic policies acting to improve prospects, economic uncertainty among consumers has greatly increased," Richard Curtin, director of the surveys, said in a press release.

"Overall, the survey data suggest that the current slowdown in spending is likely going to persist well into 2011," Curtin said.

The survey's barometer of current economic conditions fell to 76.5, the lowest since November 2009.

The survey's gauge of consumer expectations slipped to 62.3, the lowest since March 2009.