10:16 AM EDT, 07/26/2024 (MT Newswires) -- The University of Michigan consumer sentiment index was revised upwards Friday to a reading of 66.4 for July from the 66.0 print in the preliminary estimate, compared with expectations for no revision in a survey compiled by Bloomberg as of 7:30 am ET.

That was still below the final reading of 68.2 in June.

The current conditions index was revised downwards to 62.7 from a 64.1 preliminary estimate and well below the 65.9 reading in June, while the expectations index was revised upwards to 68.8 from 67.2 but was below the 69.6 reading in June.

Michigan said that rising prices keep on lowering the attitudes of customers, especially for those with lower incomes. The stable expectations for the labor market provided continued support to consumer spending. As the elections near, however, the uncertainty will probably create volatility in economic attitudes in the upcoming months.

Respondents expected a 2.9% inflation rate over the next year, down from 3% in June, while their expectation for annual inflation over the next five years remained at 3% for the fourth straight month.

The twice-monthly Michigan Sentiment index measures consumer sentiment early in the current month (the preliminary estimate) and is then revised later in the month (the final estimate).

The headline index is a combination of the current assessment and expectations for the near future. An increase in the reading suggests consumers are more confident, a positive for stocks if that confidence translates into spending. Increased demand is usually inflationary, a negative for bonds.