Source: Sharecast
The University's index of consumer sentiment rose just one point to 61.7 in July, up from 60.7 in June though marginally below the preliminary reading of 61.8 released two weeks ago.
This was the second straight improvement in the measure and the highest since February, but still under a series of near-80-point readings reached in early 2024.
The index measuring consumer views on current economic conditions improved to 68.0 from 64.8, though the consumer expectations gauge fell to 57.7 from 58.1.
One notable development was that year-ahead inflation expectations declined for the second straight month, falling from 5.0% to 4.5% in July. This was the lowest since February but still above the levels seen just after the presidential election at the end of 2024.
"Although recent trends show sentiment moving in a favourable direction, sentiment remains broadly negative," said the University's consumer surveys director Joanne Hsu.
"Consumers are hardly optimistic about the trajectory of the economy, even as their worries have softened since April 2025."