US July Inflation Expectations Continue to Decline, Consumer Confidence Remains Largely Unchanged

BlockBeats News, July 18 — Joanne Hsu, Director of the University of Michigan Consumer Survey, stated that U.S. consumer confidence changed little compared to June, rising slightly by about 1 point to 61.8. Although the index reached a five-month high, it remains about 16% lower than in December 2024 and is still well below the historical average. Unless consumers are convinced that inflation is unlikely to worsen—for example, if trade policy stabilizes in the foreseeable future—they are unlikely to regain confidence in the economy.

Current interview results show little evidence that other policy changes, including the recently passed tax and spending bills, have had a significant impact on consumer confidence. Inflation expectations for the coming year fell for the second consecutive month, dropping from 5.0% last month to 4.4% this month.

Long-term inflation expectations declined for the third consecutive month, falling from 4.0% in June to 3.6% in July. Both indices are at their lowest levels since February 2025, but remain higher than in December 2024, indicating that consumers still see a significant risk of rising inflation in the future. (Jin10)