The final reading of the University of Michigan’s Index of Consumer Sentiment rose to 61.7 in July 2025, up +1.6% MoM but still down -7.1% YoY.

• The Current Economic Conditions index rose +4.9% MoM and +8.5% YoY to 68.0, its highest since February 2025.
• The Index of Consumer Expectations slipped -0.7% MoM and is down -16.1% YoY to 57.7, marking a continued drag on overall sentiment.
• Year-ahead inflation expectations fell to 4.5% (revised up from early estimate of 4.4%) from 5.0% in June, the lowest since February but still above post-election lows.
• Long-run inflation expectations declined to 3.4% (revised down from early estimate of 3.6%), the lowest since January and down for a third straight month.