Consumer Sentiment Improves in July, But Remains Cautious

by MarketNewsData

U.S. consumer sentiment improved modestly in July, with the University of Michigan index rising to 61.7 from 60.7. While still below December 2024 levels, the data points to easing inflation concerns and a gradual recovery in confidence.

What It Means for Retail:

  • Slight improvement in consumer willingness to spend, especially on discretionary items.

  • Lower short-term inflation expectations may support purchases of apparel, electronics, and travel.

  • Value remains a top priority for consumers as long-run sentiment remains weak.

Sectors That Could Benefit:

  • Discount Retailers: Walmart (WMT), Dollar General (DG)

  • Apparel & Footwear: Nike (NKE), Gap (GPS)

  • Consumer Electronics: Best Buy (BBY), Amazon (AMZN)

  • Home Improvement: Home Depot (HD), Lowe’s (LOW)

  • Travel & Leisure: Booking (BKNG), Airbnb (ABNB)

Spending recovery remains uneven. Businesses offering value or essential goods are best positioned for near-term gains.

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