US consumer sentiment climbs to five‑month high in July

consumer sentiment University of Michigan July 2026 inflation expectations gasoline prices

The University of Michigan’s final July 2026 consumer sentiment survey reported an index of 55.2, up about 12 % from June’s 49.5 and well above the preliminary 54.4 and consensus forecast near 51.0. The reading is the highest since February 2026 and marks a five‑month high. One‑year inflation expectations fell to 4.2 % from 4.6 % in June, while five‑year expectations held steady at 3.3 %. Broad‑based gains were recorded across income, age, education and political affiliation.

Gasoline prices fell to their lowest level since March before rising again as U.S.–Iran tensions resumed, averaging $4.10 per gallon. Despite higher pump prices, consumer spending adjusted for inflation rose 0.4 % in June, matching the strongest gain in nearly a year, and durable‑goods purchase conditions hit their highest level since October. The Conference Board’s consumer confidence index, by contrast, slipped in July.

Joanne Hsu, director of the University of Michigan survey, said consumers remain focused on pocket‑book issues while political or military developments stay in the background. The Federal Reserve left its policy rate unchanged in July, though three officials dissented and favored a hike. Artificial intelligence was noted as a “salient” factor in consumer attitudes.

Entities: Federal Reserve · Iran · Joanne Hsu · U.S. consumers · United States · University of Michigan

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[● 3 SOURCES] Consumer spending adjusted for inflation rose 0.4 % in June, matching the strongest gain in nearly a year. (U.S. economic data)
[○ 1 SOURCE] The Federal Reserve kept its policy interest rate unchanged in July, with three officials dissenting and favoring a hike. (Federal Reserve statement)
[● 7 SOURCES] University of Michigan’s final July 2026 consumer sentiment index was 55.2. (University of Michigan survey)
[● 4 SOURCES] Five‑year inflation expectations held steady at 3.3 % in July. (University of Michigan survey)
[● 4 SOURCES] One‑year inflation expectations fell to 4.2 % in July from 4.6 % in June. (University of Michigan survey)
[● 2 SOURCES] Average gasoline price in July was $4.10 per gallon. (American Automobile Association / market data)
[● 2 SOURCES] Artificial intelligence was identified as a salient factor influencing consumer attitudes in July. (University of Michigan survey)
[● 7 SOURCES] The July index rose about 12 % from June’s 49.5. (University of Michigan survey)