Investing.com - U.S. consumer sentiment in July was revised higher, despite a noted acceleration in concerns over tariffs, according to a report released on Friday.
The revised publication of the data for July from the University of Michigan's Consumer Survey Center showed that consumer sentiment showed a reading of 97.9, up from the initial reading of 97.1.
Analysts had forecast for it to remain unchanged.
The current conditions indicator increased to 114.4 in July, from the previous reading of 113.9.
Economists had projected that the index would rise to just 114.0.
Additionally, consumer expectations unexpectedly increased to 87.3 in July, from the previous 86.4.
That beat consensus that had expected a rise to just 86.5.
Meanwhile, inflation expectations for the next 12 months and the five-year gauge went unrevised at 2.9% and 2.4%, respectively..
The surveyor considered the 0.3 point decline in the headline number from June to be “trivial.”
“Despite the expectation of higher inflation and higher interest rates during the year ahead, consumers have kept their confidence at high levels due to favorable job and income prospects,” the survey’s chief economist Richard Curtin explained.
Americans' worries over tariffs accelerated
However, this expert highlighted that concerns about tariffs greatly accelerated in the July survey.
“Across all households, 35% spontaneously mentioned that the tariffs would have a negative economic impact in July, up from 21% in June and 15% in May,” the data showed.
“Of course, these negative economic expectations could quickly disappear if the trade issues with Europe are promptly settled and immediately followed by agreements with China, Canada, and Mexico,” Curtin said.
“Resolution is critical to forestall decreases in consumer discretionary spending as a precaution against a worsening economy,” he concluded.