US consumer sentiment at highest since October 2021

By Ovunc Kutlu

ISTANBUL (AA) - US consumer sentiment in July was at its highest level since October 2021, according to the University of Michigan's consumer survey final results released Friday.

The index of consumer sentiment jumped 7.2 percentage points to 71.6 in July, from 64.4 in June.

The market expectation for the index was to come in at 72.6.

"All components of the index improved considerably, led by a 18% surge in long-term business conditions and 14% increase in short-run business conditions," Surveys of Consumers Director Joanne Hsu said in a statement.

"Overall, the sharp rise in sentiment was largely attributable to the continued slowdown in inflation along with stability in labor markets," she added.

Hsu, however, noted that sentiment for lower-income consumers fell, as this group anticipates that inflation and their income prospects will both worsen in the year ahead.

Year-ahead inflation expectations increased from 3.3% in June to 3.4% in July, but down from the high level of 5.4% recorded in April 2022.

The index of current economic conditions soared 7.6 points to 76.6 in July, from 69.0 in June, according to the survey results.

The index of consumer expectations increased 6.8 points to 68.3 from 61.5 during that period.