American consumers’ optimism rose for a second straight month, reaching a five-month high in July as fears of long-term inflation fell, according to the University of Michigan Consumer Sentiment Survey released on Friday.
The Consumer Sentiment Survey — an indicator of how Americans are thinking about current and future economic health — climbed to 61.7 last month, the highest number since February. While consumer sentiment rose again in July, it still remains far below the baseline of 100, which is considered a positive indicator of economic optimism. The month-over-month gain from June to July, however, suggests that Americans who were wary of President Donald Trump’s so-called reciprocal tariffs back in April are gaining confidence in the economy, even as more tariffs are set to go into effect in the coming days.
“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,” the University of Michigan report stated.
The report added that while consumers remain broadly pessimistic about the future of the economy, “their worries have softened since April 2025.”
Despite economists’ predictions of a significant rise in inflation this year due to Trump’s tariffs, year-over-year inflation has remained steady since the president began imposing massive tariffs on America’s biggest trading partners. U.S. economic growth also surpassed experts’ predictions in the second quarter, increasing 3%, another positive economic development revealed earlier this week.
The consumer sentiment survey was conducted on July 28, just four days before Trump’s August 1 trade deadline. The White House announced on Thursday night that it would push back the implementation of tariffs to August 7 to give Customs and Border Patrol officials time to adjust to the new levies targeting dozens of countries, The Daily Wire previously reported.
Trump’s so-called reciprocal tariffs were already delayed from their initial planned start date in April, as the administration negotiated trade deals with numerous countries. The White House has secured multiple trade agreements, including with some of America’s biggest trading partners in the European Union, the United Kingdom, Vietnam, and Japan. According to Trump, the terms of those trade deals will keep tariffs on partners ranging from 10% to 20%.
The Trump administration’s new plan, announced on Thursday night, will place a 10% universal tariff on countries that have a trade deficit with the United States. Nations that have a trade surplus with the United States, meaning they export more goods to America than they take in, will be hit with a tariff of at least 15%. More than a dozen countries will face tariff rates ranging from 19% to 41%. The United States is continuing negotiations with its three largest trading partners — China, Canada, and Mexico — as the Trump administration has yet to secure a trade deal with any of them.
The consumer sentiment report also came out on the same day the monthly U.S. jobs report showed that fewer jobs were added to the economy in July than what economists expected, while the unemployment rate remained mostly unchanged.