Consumer confidence in the US rose to a five-month high in early July as consumer expectations for the economy and inflation continued to improve. According to data released by the University of Michigan on Friday, the initial value of the consumer confidence index for July rose to 61.8 from 60.7 last month. However, this figure is still below the level for most of last year. Consumers expect an inflation rate of 4.4% over the next year, down from 5% in the previous month, and the lowest level since February this year. They expect an annual inflation rate of 3.6% over the next 5-10 years, the lowest in five months. Meanwhile, concerns about tariffs continue to limit optimism about the economic outlook. “Consumer expectations for the business environment, the labor market, and even their own income are still weaker than they were a year ago,” Joanne Hsu, head of the survey project, said in a statement. Hsu said, “However, the recovery in confidence over the past two months shows that consumers think the risk of the worst-case scenario they feared in April and May has been mitigated.” Consumers' views on their current financial situation have improved, which may be boosted by a rebound in the stock market. The investigation ended on July 14, more than a week after Trump signed the tax reform bill. However, Hsu pointed out that a new round of tariff increases or a recovery in inflation may dampen consumer confidence.

Consumer confidence in the US rose to a five-month high in early July as consumer expectations for the economy and inflation continued to improve. According to data released by the University of Michigan on Friday, the initial value of the consumer confidence index for July rose to 61.8 from 60.7 last month. However, this figure is still below the level for most of last year. Consumers expect an inflation rate of 4.4% over the next year, down from 5% in the previous month, and the lowest level since February this year. They expect an annual inflation rate of 3.6% over the next 5-10 years, the lowest in five months. Meanwhile, concerns about tariffs continue to limit optimism about the economic outlook. “Consumer expectations for the business environment, the labor market, and even their own income are still weaker than they were a year ago,” Joanne Hsu, head of the survey project, said in a statement. Hsu said, “However, the recovery in confidence over the past two months shows that consumers think the risk of the worst-case scenario they feared in April and May has been mitigated.” Consumers' views on their current financial situation have improved, which may be boosted by a rebound in the stock market. The investigation ended on July 14, more than a week after Trump signed the tax reform bill. However, Hsu pointed out that a new round of tariff increases or a recovery in inflation may dampen consumer confidence.