Consumer Sentiment Holding Steady

Consumer sentiment is holding steady this month, at 98.4 for preliminary July versus 98.2 for final June. The current conditions component, which is very solid, fell slightly to 111.1 while the expectations component, which is likewise positive, rose slightly to 90.1. Inflation expectations are mixed but moderate, with the year-ahead outlook down 1 tenth at 2.6 percent and the 5-year outlook, which is often more volatile, up 3 tenths and also at 2.6 percent. Confidence is a key concern for the Federal Reserve policy makers and today's report should confirm their faith in the resilient strength of the consumer.