Consumer sentiment inched up +1.8% MoM to 61.8 in July 2025, its highest in five months, but remains down -6.9% YoY and well below historical norms.

• The Index of Current Economic Conditions rose +3.1% MoM to 66.8 (+6.5% YoY), while the Index of Consumer Expectations increased +0.9% MoM to 58.6 but remains down -14.8% YoY.
• Despite the modest rebound, sentiment is still 16% below its December 2024 level, with ongoing inflation and trade policy concerns weighing on consumer views.

Year-ahead inflation expectations declined to 4.4%, from 5.0% in June and 6.6% in May, the lowest since February 2025.

• Long-run (5-year) inflation expectations also fell to 3.6% in July, down from 4.0% in June and 4.2% in May.