The University of Michigan’s consumer sentiment index for the US came in at 61.7 in July 2025, largely unchanged from the preliminary reading of 61.8. This marked the second consecutive monthly increase, pushing sentiment to its highest level since February 2025. The current conditions subindex rose by nearly 5% to 68.0, a five-month high, up from 64.8 in June, while the expectations index edged down slightly to 57.7 from 58.1. Sentiment improved notably among stockholders but was partly offset by a decline among non-investors. Despite the recent upward trend, overall sentiment remains broadly subdued. Inflation expectations continued to moderate. One-year inflation expectations dropped for a second straight month, falling from 5.0% in June to 4.5% in July, while long-run expectations declined for a third month in a row, easing from 4.0% to 3.4%.