U.S. Consumer sentiment rose to 61.8 in early July, the highest in five months

In early July, U.S. Consumer sentiment reached 61.8, up from 60.7 in June. Inflation expectations are down to 4.4% for the short term. Retail sales increased by 0.6% in June, exceeding predictions, reinforcing market confidence.

Despite the rise in sentiment, concerns about tariffs and the job market persist. Political affiliations appear to influence optimism, with Republicans displaying more positive sentiment than Democrats. The survey was conducted before tariff hikes took effect.