Consumer Sentiment Weakens, Core PCE In Line With Estimates

Consumer sentiment in July were slightly weaker than economists estimated, while the Federal Reserve's preferred inflation gauge rose in line with Wall Street estimates in June, adding to a pile of economic data that may sway policymakers to start cutting interest rates in September.

The University of Michigan's consumer sentiment index fell to 66.4 this month, from 68.2 in June. That's slightly lower than the 66.5 expected in a Bloomberg survey and the weakest reading since November 2023.

Meanwhile, the core personal consumption expenditures (PCE) price index, which excludes food and energy, rose 0.2% from a month earlier, according to the Bureau of Economic Analysis. While that's modestly higher than the 0.1% gain seen in May, it's just what the market was expecting for June, according to estimates compiled by Bloomberg. The overall PCE index was up 0.1%, in line with expectations.