Consumer Sentiment Rose 11.5% in July

Ann Arbor, MI, July 31, 2026—Consumer sentiment rose 11.5% to 55.2 in July, according to final results from the University of Michigan Survey of Consumers. 

This represents a 10.5% decline year over year. 

“Consumer sentiment confirmed its early-month reading, landing almost 12% above June,” says Survey director Joanne Hsu. “Broad-based improvements were seen across all groups by income, education, wealth, age, and political party. Five-year expected business conditions reached a 12-month high, though it remains well under its historical average. Despite recent gains, sentiment is 11% below a year ago, reflecting a generally somber view of the economy amid five years of elevated inflation and persistent high prices. Consumers remain focused on pocketbook issues like purchasing power, while political or military developments remain more in the background. Interviews for this release spanned June 23 to July 27. 

“Year-ahead inflation expectations ticked down from 4.6% in June to a still-elevated 4.2% this month. The current reading substantially exceeds the 3.4% seen in February before the Iran conflict began, along with all 2024 readings. Long-run inflation expectations held steady from last month at 3.3%, remaining a bit higher than the 2.8% to 3.2% range seen in 2024.”