Consumer Sentiment Down Less Than Expected in July

July 26, 2002 11:45 AM, EDT

The University of Michigan said Friday its final consumer sentiment index for July was 88.1, which was lower than last month’s reading but higher than the 86.5 that economists expected, Bloomberg reported.

If sentiment is falling, consumer spending, which the trucking industry relies on for much of its revenue, is likely to decrease.

The preliminary reading for July had been 86.5, and followed June’s reading of 92.4 Economists had expected the index to remain at that level, Bloomberg reported.

Analysts told Bloomberg the consumers are remaining resilient despite the recent plunge in the stock market and are helping prevent a double-dip recession.

The current conditions index, which reflects consumers’ perception of their financial situation and their willingness to spend on household items such as furniture and stoves, was 99.3, better than a previously reported 99. It was 99.5 in June.

The expectations index, based on optimism about the next one to five years, was 81. While down from 87.9 in June, it was better than the previously reported 78.5 for this month.