![]()
- Gates Boosts Waste Management, Coca Cola Stakes
- Stocks Overvalued; Recession to Return: Whitney
- What's Kept Stock Rally Going? Fear, Not Confidence
- Fed to Keep Rates Low Despite Dollar's Fall: Bernanke
- Millions Could Have to Repay Part of Obama's Tax Credit
- Hollywood Turns to Porn as Unemployment Rises
- Slideshow: US Cities With Most Underwater Mortgages
- Solar Energy Emerges From a Dark Period
- Gold Is in a 'Bubble' And Will Keep Going Higher: Gartman
- Answers to Your Questions: A Path to Economic Disaster?
- 5 Ways to Play the Chinese Markets: Analyst
- Meredith Whitney: Turns Bearish
- 3 Stock Plays on Rising College Costs
- Warren Buffett's Berkshire Hathaway Almost Doubles Wal-Mart Holdings During Summer
- Nov. 16: Unusual Volume Leaders
- Getting to the Heart of the Merck-Abbott Embargo Break
- What MGM's Sale Could Say About Value of Content
- My Ratings on Lowe's & Home Depot: Analyst
MOST SHARED
- Stocks Overvalued, Recession Will Return: Meredith Whitney
- Has Twitter's Finest Hours (Seconds) Come and Gone?
- Fed Likely to Keep Rates Low Despite Dollar's Fall: Bernanke
- U.S. May Wind Up Green With Envy
- BofA Ex-Counsel: I Was 'Stunned' When I Got Fired
- Bernanke Offers Something For Everyone
- U.S. Cities With The Most Underwater Mortgages
- What's Kept the Rally Going? Investor Fear, Not Confidence
- Warren Buffett's Berkshire Hathaway Almost Doubles Wal-Mart Holdings During Summer
- Stanford Receiver to Release Funds Of Frozen Acounts
U.S. consumer sentiment recovered unexpectedly from early 1980s lows in July as Americans received government tax rebate checks but remained pressured by high gasoline prices and falling home values.
The Reuters/University of Michigan Surveys of Consumers said its final July reading of its index of confidence rose to 61.2 from 56.4 in June. Analyst forecasts had pointed to no change from last month.
![]() |
Both perceptions of current economic conditions and expectations improved somewhat on the month. Yet the outlook was far from rosy, according to the survey.
"The data still indicate an ongoing downturn in spending that will last well into 2009," the report said.
Inflation expectations one year out held steady at 5.1 percent, while looking further out at a five-year horizon they dipped to 3.2 percent from 3.4 percent.
The U.S. economy has been battered over the past year by a crisis that began in the mortgage sector but then spread to banking, infecting financial markets with a deep sense of mistrust that has curtailed lending in various sectors.
Consumer spending has also petered out after a prolonged credit-driven boom. Economists fear that retrenchment could worsen as weaker home prices reduce homeowners' ability and willingness to borrow.
Americans have also been squeezed by the rising cost of gasoline, an essential commodity in a nation of drivers. The price of crude oil has pulled back recently, trading below $124 a barrel after reaching peaks around $147 this month.
This retreat may provide some relief at the pump, but perhaps not enough to make the otherwise turbulent economic outlook feel that much better.
"Gas price expectations declined modestly in July, but were still higher than any year prior to 2008," the Reuters/UMich report said. "Despite the recent bounce (in confidence), buying plans for homes, vehicles and household durables remained quite negative."
At the very least, the retreat in long-term price expectations should provide some comfort to policy-makers at the Federal Reserve, who have been worried that an inflationary psychology might take hold of consumers and businesses.
- Where, what, how.
- CNBC's Jim Goldman asks: Has the sun begun to set on Twitter? Data suggests its best days are over.
- Everyone wanted a piece of Madoff's "Bullship"--the famous buoy sold for $7,500 at auction. You won't believe these prices.
- De Loach Vineyards is selling its pinot noir the old fashioned way, helping to cut energy and transportation costs.
- Why are the Chinese concerned about the progress of U.S. health care legislation?
- CNBC's Maria Bartiromo talks to rapper Snoop Dogg about brand identity in both business and music.












