U.S. consumer confidence jumps in July, price expectations little changed

The American consumer grew more confident in July, the results of a closely followed survey revealed.

The University of Michigan's consumer confidence index improved from a reading of 64.4 for June to 71.6 in July.

Economists had forecast a reading of 72.6, which would have been in line with the preliminary reading.

Joanne Hsu, the survey director, said: "overall, the sharp rise in sentiment was largely attributable to the continued slowdown in inflation along with stability in labor markets.

"However, sentiment for lower-income consumers fell. This group anticipates that inflation and their income prospects will both worsen in the year ahead, highlighting the heterogeneity of views across the population."

Inflation expectations one year ahead ticked higher by one tenth of a percentage point versus June to 3.4%.

At 3.0% expectations for the long-run remained stuck in the same sideways range of 2.9-3.1% hat had been in place over 23 of the past 24 months.