Investing.com – U.S. consumer sentiment declined more than expected in July, dampening optimism over the American economy, according to a report published on Friday.
The preliminary publication of the data for July from the University of Michigan's Consumer Survey Center showed that consumer sentiment fell to 93.1 from 95.1 in the previous month.
Analysts had forecast the reading to slip to just 95.0.
The current conditions indicator registered an unexpected increase to 113.2 in July.
Consensus was looking for the reading to remain unchanged at June’s reading of 112.5.
Additionally, consumer expectations unexpectedly fell to 80.2 in July, from the prior reading of 83.9.
Economists had expected the indicator to inch up to 84.0.
Meanwhile, inflation expectations for the next 12 months rose to 2.7% from the prior 2.6%, while the five-year gauge increased to 2.6%, from the prior 2.5%.
“To be sure, the data do not suggest an impending recession,” the report indicated.
“Rather, the data indicate that hopes for a prolonged period of 3% GDP growth sparked by Trump's victory have largely vanished, aside from a temporary snap back expected in the 2nd quarter,” it added, specifying that the declines recorded are now consistent with just above 2% GDP growth in 2017.
After the report, EUR/USD was trading at 1.1455 from around 1.1449 ahead of the release of the data, GBP/USD was at 1.3065, compared to 1.3036 previously, while USD/JPY was at 112.36 from 112.39 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 95.01 compared to 95.07 before the report.
Meanwhile, U.S. stocks traded higher after the open. The Dow Jones edged forward 12 points, or 0.05%, the S&P 500 rose 2 points, or 0.08%, while the tech-heavy Nasdaq Composite traded up 8 points, or 0.13%.
Elsewhere, in the commodities market, gold futures traded at $1,230.61 a troy ounce, compared to $1,230.47 ahead of the data, while crude oil traded at $46.52, compared to $46.62 prior to the release.