Forex▲ Bullish
US Consumer Sentiment Rebounds to 55.2, Inflation Expectations Ease
The University of Michigan sentiment index rose to 55.2 in July, topping estimates. One-year inflation expectations fell to 4.2%, the lowest since December 2025, supporting the dollar.
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The University of Michigan consumer sentiment index rose to 55.2 in July, a sharp rebound from the 49.5 reading in June and above the 54.0 median estimate in a Bloomberg survey. The improvement was broad-based, with both current conditions and expectations recovering from the lowest levels since the survey's current methodology began.
Current conditions climbed to 54.8 from 47.7, while expectations rose to 55.4 from 50.7. The preliminary reading had been 54.4, and the final revision added 0.8 points – a larger upward adjustment than the typical 0.3-0.5 point change.
One-year inflation expectations slipped to 4.2% from 4.6% in June, the lowest since December 2025. The five-year outlook held steady at 3.3%. The decline in near-term inflation expectations gives the Federal Reserve room to move at a measured pace, traders said.