US consumer sentiment jumped in July amid broad-based gains across demographic groups, while year-ahead inflation expectations eased, final results of a survey by the University of Michigan showed Friday.
The main sentiment index increased nearly 12% sequentially to 55.2 this month. The gauge for current economic conditions jumped to 54.8 from 47.7, while the index of consumer expectations advanced 9.3% to 55.4, according to the survey.
Broad-based gains across demographic groups fueled the headline index's climb, according to Surveys of Consumers Director Joanne Hsu.
"Five-year expected business conditions reached a 12-month high, though it remains well under its historical average," Hsu said. "Despite recent gains, sentiment is 11% below a year ago, reflecting a generally somber view of the economy amid five years of elevated inflation and persistent high prices."
The year-ahead inflation outlook fell to 4.2% this month from 4.6% in June, while the five-year price growth expectations remained unchanged at 3.3%, the survey showed.
"Consumers remain focused on pocketbook issues like purchasing power, while political or military developments remain more in the background," Hsu said.
Earlier this week, a survey by the Conference Board showed that US consumer confidence unexpectedly fell in July, with "little improvement" in business conditions expected over the next six months. Official data showed that growth in the world's largest economy slowed more than expected in the second quarter, though consumer spending seemed to shrug off intensifying price measures.
Crude prices fell in May and June before rebounding in July as the US and Iran resumed strikes against each other, just weeks after signing a memorandum of understanding to halt the war that began at the end of February.
