NEW YORK – Consumer sentiment slipped unexpectedly in July, a report showed on Friday, as consumers' view of their current conditions and expectations declined modestly.
The University of Michigan's preliminary reading on consumer sentiment in July was 83.0, down from June's final 84.9 reading, said sources who saw the subscription-only report. The median forecast of Wall Street economists polled by Reuters was for a reading of 85.5.
The survey's index of current conditions slipped to 100.8 in July from 105.0 in June, while consumer expectations declined to 71.6 from 72.0 in June.
Consumer spending accounts for about two-thirds of U.S. economic activity, but in recent years confidence measures have been a weak guide to actual spending.
Consumers' expectations in July were for more muted inflation ahead, the report said, according to the sources.
The University of Michigan's preliminary July reading on one-year U.S. inflation expectations was 3.1 percent, down from 3.3 percent in June.
Median expectations for inflation over a five-year horizon edged down to 2.8 percent in July from 2.9 percent in June.