U.S. Consumer Sentiment Drops More Than Previously Estimated In July

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Consumer sentiment in the U.S. pulled back by more than previously estimated in the month of July, according to a report released by the University of Michigan on Friday.

The report said the consumer sentiment index for July was downwardly revised to 93.1 from the mid-month reading of 93.3. With the downward revision, the index was even further below the final June reading of 96.1

The downward revision came as surprise to economists, who had expected the index to be upwardly revised to 94.1.

Richard Curtin, the survey's chief economist, said, "A disappointing pace of economic growth was the main reason for the small decline in consumer confidence."

"Nonetheless, the data provide no indication of a break in the prevailing positive trend," he added. "Indeed, the Sentiment Index has averaged 94.5 since December 2014, the highest eight month average since 2004."

The drop by the headline consumer sentiment index reflected decreases in both the assessment of current conditions and consumer expectations.

The current economic conditions index fell to 107.2 in July from 108.9 in June, while the index of consumer expectations dropped to 84.1 from 87.8.

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