The University of Michigan consumer sentiment for the US increased to 61.8 in July 2025, the highest in five months, compared to 60.7 in June and above forecasts of 61.5, preliminary estimates showed. The current conditions index improved to 66.8 from 64.8 and the expectations gauge rose to 58.6 from 58.1. Short-run business conditions improved about 8%, whereas expected personal finances fell back about 4%. Meanwhile, year-ahead inflation expectations fell for a second consecutive month to 4.4% from 5% in June. Long-run inflation expectations receded for the third consecutive month, falling back to 3.6% from 4%. Both inflation gauges are the lowest since February but remain above December 2024, indicating that consumers still perceive substantial risk that inflation will increase in the future.