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 The Thomson Reuters/University of Michigan's preliminary July
reading on the overall index on consumer sentiment came in at 81.3,
below both the consensus analyst expectation of 83 and the final
June read of 82.5.
"The most remarkable aspect of recent trends in consumer confidence
has been its resistance to change in either direction due to very
negative GDP nor very positive employment gains," survey director
Richard Curtin said in a statement.
"This stability will provide the necessary strength for consumer
spending to continue to expand, but does not support an acceleration
in spending above 2.5 percent."
The survey's barometer of current economic conditions rose to 97.1
from 96.6, compared with a forecast of 97.0.
The survey's gauge of consumer expectations slipped for a third
straight month, to 71.1 from 73.5. The subindex was below an
expected 74.0.
The survey's one-year inflation expectation rose to 3.3 percent from
3.1 percent in June, while the survey's five-to-10-year inflation
outlook fell to 2.6 percent from 2.9 percent.
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Curtin said long-term inflation expectations had only been lower
once in the past 25 years, in 2009, when expectations were for 2.5
percent.
"Indeed, 2.6 percent was only recorded twice before at the depth of
the Great Recession," he said. "While at the bottom of the range it
has traveled in the past decade, it gave no indication of a trend
toward deflation."
(Reporting by Ryan Vlastelica; Editing by Meredith Mazzilli)
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