U.S. inflation expectations fell for the second consecutive month in July, with little change in consumer confidence.

BlockBeats news, on July 18, Joanne Hsu, director of consumer surveys at the University of Michigan, stated that U.S. consumer confidence changed little compared to June, rising slightly by about 1 point to 61.8. Although the index reached a five-month high, it is still about 16% lower than in December 2024 and well below historical averages. Unless consumers are confident that inflation is unlikely to worsen, such as trade policies stabilizing in the foreseeable future, they are unlikely to restore their confidence in the economy. Current interview results show little evidence that other policy changes (including the recently passed tax and spending bill) have had a significant impact on consumer confidence. Inflation expectations for the coming year have fallen for the second consecutive month, dropping from 5.0% last month to 4.4% this month. Long-term inflation expectations have declined for the third consecutive month, falling from 4.0% in June to 3.6% in July. Both indices are at their lowest levels since February 2025, but still higher than in December 2024, indicating that consumers still perceive a significant risk of rising inflation in the future. (Jin10)