Consumer Sentiment: Revised Lower But Still Trending Up

Bottom Line:  The University of Michigan's consumer sentiment index was down just slightly in late July but still well above last month's reading. Consumers are generally less concerned about inflation and report stability in the labor market. However, the lowest-income demographic remains concerned, anticipating higher inflation and declining income prospects in the next year.  That said, the overall level of sentiment across demographics continued to improve sharply in July and was trending notably higher since the lows of June 2022, suggesting continued positive growth in consumer spending in the 2nd Half.