By Brai Odion-Esene

WASHINGTON (MNI) – U.S. consumer sentiment rose in July according
to the final reading of the Reuters/University of Michigan Consumer
Sentiment data released Friday.

The index came in at 67.8 vs. July’s preliminary reading of 66.5.

The index’s preliminary number for current conditions came in at
76.5 for July vs. 75.5 earlier in the month and expectations rose to
62.3 vs. 60.6 reported initially.

Consumers’ updated 1-year inflation expectations came in at 2.7%
compared to July’s preliminary expectation of 2.9%. Five-year inflation
expectations were 2.9% vs. July’s early reading of 2.9%.

The median forecast in the Market News International survey of
economists was for the index to rise half a point to 67.0, consistent
with a mixed bag of economic reports — modest improvement in some
sectors, slowing activity in others.

The advance estimate of U.S. Q2 GDP revealed growth of 2.4%, close
to the MNI consensus forecast of 2.5%. The downside move, from +3.7% in
Q1, was due to a smaller positive contribution from consumer spending
which rose 1.6% in Q2, reflecting just a 0.8% rise in services
consumption.

Federal Reserve Chairman Ben Bernanke described the U.S. economic
outlook as “unusually uncertain” in recent Congressional testimony,
while in its latest survey of economic conditions around the country —
the “Beige Book” — the Fed said only eight Districts reported stronger
activity, with “a number” of them describing the increase as “modest.”

This compared with the June findings that showed activity improved
in all 12 Districts.

Similar to Friday’s U.S. consumer sentiment data, the European
Commission Thursday, as part of its report on EMU economic morale, said
consumer sentiment rose another three points in July after a one-point
upturn in June to stand just one point below the long-term average.

The gain reflected mainly a higher assessment of recent economic
activity (+6) and prospects for the year ahead (+6), which had eroded
sharply with the intensification of the sovereign debt crisis in May.

Preliminary consumer sentiment index data for August will be
released August 13.

** Market News International Washington Bureau: 202-371-2121 **

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