US consumer sentiment deteriorates in July

Consumer sentiment in the US deteriorated in July, according to final figures from the University of Michigan.

The index of consumer sentiment came in at 93.4, up from a preliminary reading of 93.1 but below June's 95.1. It was above last July's reading of 90.0, however.

The current economic conditions index rose to 113.4 from 112.5 in June and 109.0 in July 2016. Meanwhile, the index of consumer expectations declined to 80.5 this month from 83.9 in June, but was above last July's reading of 77.8.

Surveys of Consumers chief economist, Richard Curtin, said: "Consumer confidence remained largely unchanged at the same favourable level recorded at mid-month. The overall sentiment index has declined by 5.1 Index-points since the January peak, which was the highest figure in a dozen years. The relatively small decline still left the sentiment index higher in the first seven months of 2017 than in any other year since 2004.

"The size of the decline was tempered by record favourable views of current economic conditions, which rose to its highest level since July of 2005. These gains were mainly due to improvements in consumers' personal finances. At the same time, consumers expressed less optimism about future prospects for the overall economy and for their own personal finances. The expectations index fell from 90.3 in January to a still positive 80.5 in July; if it continues to decline by another 10 points in the second half of 2017, the loss would become more worrisome. "