Consumer belief in the United States weakened by less than initially estimated in the month of July, the University of Michigan exposed in a report released on Friday.
The report stated the customer belief index for July was upwardly revised to 97.9 from the preliminary reading of 97.1. Despite the upward revision, the index was still down from 98.2 in June.
“Concerns about tariffs significantly sped up in the July study,” said Studies of Consumers chief financial expert, Richard Curtin. “Across all families, 35% spontaneously pointed out that the tariffs would have an unfavorable economic impact in July, up from 21% in June and 15% in May.”
He added, “Customers who had negative concerns about the tariffs voiced a far more cynical economic outlook, had inflation expectations that were 0.6 portion points higher than those who hadn’t pointed out tariffs, and were most likely to expect that the unemployment rate would increase during the year ahead.”
The report stated the index of current economic conditions was up to 114.4 in July from 116.5 in June, while the index of consumer expectations ticked as much as 87.3 from 86.3.
On the inflation front, one-year inflation expectations edged down to 2.9 percent in July from 3.0 percent in June and five-year inflation expectations dipped to 2.4 percent from 2.6 percent.
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