The University of Michigan's final reading of consumer sentiment in July matched Consensus expectations and held at the improved level of 96.5 reported mid-month. Sentiment rose 0.5% for the month on top of a 10.5% increase during June.

During the last ten years there has been a 74% correlation between the level of consumer sentiment and the y/y change in real PCE, although the correlation has fallen in recent years.

Consumer expectations rose slightly less than estimated earlier in the month. The 0.6% gain followed a 12.9% surge during June but the reading of current economic conditions rose slightly instead of declining as indicated earlier.

The University of Michigan survey is not seasonally adjusted.The mid-month survey is based on telephone interviews with 250 households nationwide on personal finances and business and buying conditions. The survey is expanded to a total of 500 interviews at month end.