Consumer optimism reached its highest point in five months

Consumer optimism rose for the second consecutive month and reached a five-month high. So found a University of Michigan survey, conducted monthly to gauge Americans' perceptions of the current and future state of the economy. The July consumer confidence index was 61.7, the highest since February.

The increase from June to July suggests that even those who were most skeptical of President Donald Trump's tariff policy are regaining confidence in the country's economic direction.

The poll was conducted on July 28, just four days before the negotiating deadline announced by the White House. In order to give Customs and Border Protection officials time to adjust to the new trade regime, the deadline was extended to August 7.

"Consumer sentiment improved for the second straight month, inching up a scant single index point from June. Current conditions rose about 5% to its highest reading since February 2025, while the expectations index fell slightly. A rise in sentiment among stock holders was partially offset by a decline among consumers who do not own stocks," the University of Michigan explained.

The survey noted that optimism grew across the political spectrum - Republicans, Democrats and independents.

"Perceptions of this month’s economic developments were similar across the political spectrum; Republicans, Independents, and Democrats all saw some minor increases in sentiment this month. Although recent trends show sentiment moving in a favorable direction, sentiment remains broadly negative. Consumers are hardly optimistic about the trajectory of the economy, even as their worries have softened since April 2025," they added.