U.S. consumer confidence rises slightly as inflation expectations decline for the consecutive time.

According to reports, Joanne Hsu, director of consumer surveys at the University of Michigan, stated that consumer confidence in the United States has changed little compared to June, with a slight rise of about 1 point to 61.8. Although the index hit a five-month high, it is still about 16% lower than December 2024 and far below the historical average. Unless consumers are confident that inflation is unlikely to worsen, such as trade policies stabilizing in the foreseeable future, they are unlikely to regain confidence in the economy.

The current interview results show almost no significant impact of other policy changes (including the recently passed tax and spending bills) on consumer confidence. Inflation expectations for the coming year have declined for the second consecutive month, dropping from 5.0% last month to 4.4% this month.

Long-term inflation expectations have fallen for the third consecutive month, dropping from 4.0% in June to 3.6% in July. Both indices are at their lowest levels since February 2025, but still above December 2024, indicating that consumers still believe there is a significant risk that inflation will rise in the future.