Consumer confidence slid in July from the prior month on dimmer views of the U.S. economy’s prospects and lingering concerns among higher-income earners about global market conditions. The University of Michigan said Friday that its final index of sentiment declined to 90 this month from 93.5 in June. The median projection in a Bloomberg survey of economists called for a reading of 90.2 after July’s preliminary figure of 89.5. A record share of households with incomes in the top third mentioned the U.K.’s decision to leave the European Union was weighing on outlooks. The gap between current views of the economy and expectations
The sentiment survey’s current conditions index, which measures Americans’ assessment of their personal finances, fell in July to 109 from 110.8 last month. The measure of expectations six months from now decreased to 77.8 from 82.4.
Americans anticipated an inflation rate of 2.7 percent in the next year, up from 2.6 percent in June. They expect prices to rise 2.6 percent over the next five to 10 years, the same as in the previous month.
Despite the setback in sentiment this month, consumers have shown they’re more willing to spend than they were at the start of the year.
Personal consumption climbed at a 4.2 percent annualized rate in the three months ended in June following a 1.6 percent pace in the first quarter, the Commerce Department’s GDP figures showed.
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