US consumers have been feeling a whole lot better this summer as inflation has continued to slow
Consumer sentiment tracked by the University of Michigan rose 11% in July from the prior month, reaching its highest level since October 2021, according to a final reading of the month’s data. That’s a huge improvement from June 2022, when consumer sentiment fell to its lowest level on record and inflation reached a four-decade high of 9.1%. Americans’ expectations for inflation rates in the year ahead inched up to a 3.4% rate, “well below the high point of 5.4% from April 2022 but above the 2.
“With employment and household disposable income growth expected to moderate in the second half of the year, the slowdown in consumer spending will accelerate as the buffer from excess savings shrinks, student loan repayments restart, and credit conditions tighten further.
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