Consumer confidence in the United States rose to a five-month high in early July, while inflation expectations showed a slight decline.

Due to continued improvements in consumer expectations for the economy and inflation, consumer confidence in the United States rose to a five-month high in early July. According to data released by the University of Michigan on Friday, the preliminary consumer confidence index for July rose from 60.7 in the previous month to 61.8. However, this number is still lower than the levels for most of last year. Consumers expect an inflation rate of 4.4% in the next year, lower than the 5% from the previous month, and the lowest level since February of this year. They expect the annual inflation rate for the next 5-10 years to be 3.6%, the lowest in five months. Meanwhile, concerns about tariffs continue to limit people's optimism about the economic outlook. "Consumers' expectations for the business environment, labor market, and even their own incomes are still weaker than a year ago," said Joanne Hsu, the project leader of the survey, in a statement. Hsu said, "However, the rebound in confidence over the past two months indicates that consumers believe the risks of the worst-case scenarios they were worried about in April and May have eased." Consumers' views on their current financial situation have improved, possibly boosted by the stock market rebound. The survey ended on July 14, just over a week after Trump signed the tax bill. However, Hsu pointed out that if there is a new round of tariff increases or a rise in inflation, it could suppress consumer confidence.