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U.S. Consumer Sentiment Hits Five-Month High Following Tariff Delay

July’s University of Michigan survey showed consumers dialed back longer-term inflation concerns after the administration moved reciprocal tariffs to August 7

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Overview

  • The index increased for a second consecutive month, rising from 60.7 in June to 61.7 in July, its highest level since February 2025.
  • Year-ahead inflation expectations declined from 5.0% to 4.5%, marking their lowest reading since February 2025.
  • Consumer confidence gains were similar across the political spectrum, with Republicans, Independents and Democrats all reporting slight improvements.
  • Despite the uptick, the index remains far below the 100-point level associated with overall economic optimism.
  • The White House pushed back reciprocal tariffs to August 7, secured trade agreements with the EU, UK, Vietnam and Japan, and unveiled a tiered tariff plan charging 10% on deficit nations and at least 15% on surplus partners.