According to BlockBeats, Joanne Hsu, the director of the University of Michigan's consumer survey, reported a slight increase in U.S. consumer confidence, rising by approximately one point to 61.8 compared to June. Although this marks a five-month high, the index remains about 16% lower than December 2024 and significantly below historical averages. Consumers are unlikely to regain confidence in the economy unless they are assured that inflation is unlikely to worsen, such as through stable trade policies in the foreseeable future.
Current survey results show minimal impact on consumer confidence from other policy changes, including the recently passed tax and spending legislation. Inflation expectations for the coming year have decreased for the second consecutive month, dropping from 5.0% last month to 4.4% this month.
Long-term inflation expectations have also declined for the third month in a row, falling from 4.0% in June to 3.6% in July. Both indices are at their lowest levels since February 2025, yet they remain higher than in December 2024, indicating that consumers still perceive a significant risk of rising inflation in the future.
