U.S. Consumer Confidence Index rises to a 5-month high, inflation expectations drop to a year-to-date low.

On July 18, with expectations for the economy and inflation continuing to improve, the U.S. Consumer Confidence Index rose to a 5-month high in early July. Data released by the University of Michigan on Friday showed that the preliminary Consumer Confidence Index for July increased from 60.7 a month ago to 61.8. However, this figure is still below the levels of the entire previous year.

Consumers expect an annual inflation rate of 4.4% over the next year, down from 5% last month, marking the lowest level since February of this year. They anticipate an annual inflation growth rate of 3.6% over the next 5 to 10 years, which is also the lowest level in 5 months. Meanwhile, concerns about tariffs continue to limit people's optimism about the economic outlook.

Joanne Hsu, the head of the survey, stated in a statement: "Consumers' expectations regarding business conditions, the labor market, and even their own income are weaker than a year ago. That said, the rise in confidence over the past two months indicates that consumers believe the risks of the worst-case scenarios they anticipated in April and May have eased. However, the announcement of increased tariffs or rising inflation could dampen market sentiment."