Consumer Sentiment Climbed in July, per Michigan Survey

By Matt Grossman

Americans' economic mood improved earlier this month as gasoline prices cooled, according to the preliminary results of the University of Michigan's monthly survey.

The survey's sentiment index rose to 54.4 in its initial July reading, from 49.5 in June. Analysts polled by The Wall Street Journal were anticipating the index would reach 50.5.

The initial result is based on responses that came in between June 23 and July 13. During that stretch, the average U.S. gasoline price was $3.86, down from an average price of $4.49 during May, according to AAA data.

Over the past week, gasoline prices have climbed again as the conflict in Iran reignited. Joanne Hsu, the director of the Michigan survey, said the index's gains could prove short lived if gasoline stays expensive.

"Sentiment's upward momentum may prove difficult to sustain if recent declines in gas prices continue to reverse course," Hsu said.

The Michigan survey will publish a final July figure that incorporates more recent consumer responses in two weeks.

Consumers' long-run inflation expectations held steady versus June. Watching long-run inflation expectations is important to Federal Reserve officials, who worry that a lack of confidence in their ability to rein in inflation could itself contribute to an inflationary increase in wages and spending.

Inflation data published this week by the Labor Department showed that consumer prices declined in June, pulling down the 12-month inflation rate to 3.5%.

Write to Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

July 17, 2026 10:29 ET (14:29 GMT)