Univ-Michigan July Prelim Consumer Sentiment 81.3 Vs 82.5 June

WASHINGTON (MNI) - U.S. consumer sentiment fell in the early part of July to its lowest level since March, hurt by consumers' expectations for the future, according to the University of Michigan Consumer Sentiment survey released Friday.

The preliminary reading of the July consumer sentiment index came in below expectations, reported at 81.3 compared to 82.5 in June and 81.9 in May. The index was at 84.1 in April and 80.0 in March.

The index's measure of how consumers view current conditions did rise to 97.1 from the 96.6 reported last month and vs. 94.5 in May. The index came in at 98.7 in April, and 95.7 in March's report.

The flash gauge of consumers' expectations regarding future conditions took a step back, to 71.1 - also the lowest since March - from 73.5 in June's final report. This index came in at 73.7 in May, 74.7 in April, and 70.0 in March.

One-year inflation expectations in July's preliminary report are at 3.3%, up from 3.1% in June. May's expectation was for 3.3%, April 3.2%. Five-year inflation expectations are at 2.6% vs. 2.9% last month, the lowest since October 2012. May's expectation was for 2.8%.

The preliminary reading of consumer sentiment compares to the median expectation of 83.0 in MNI's survey of economists. The final report with revised estimates for July will be released August 1.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.
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