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Consumer confidence in the US rose in early this month to its highest level in 5 months due to lower fuel prices, according to a report released by the University of Michigan today, Friday.

The university said the consumer confidence index rose in July to 54.4 points from 49.5 points in June, exceeding the expectations of all analysts surveyed by Bloomberg News.

Consumer confidence in the US recovers from its lowest levels as gasoline prices fall

Bloomberg pointed to the decline in gasoline prices in the US during June and early July, which helped ease the pressure on American household budgets.

Since then, fighting between the US and Iran has resumed and the Strait of Hormuz was closed again, causing oil prices and fuel prices to rise, along with inflation expectations.

Data for the current survey was collected from June 23 to July 13, while the report indicated that 70% of the responses in this survey came before the resumption of fighting between the US and Iran in early this month.

Regarding prices, consumers expect prices to rise over the next year at an annual rate of 4.2%, while expectations in last month's survey were 4.6% annually. They also expect prices to rise over the next 5 to 10 years at an annual rate of 3.3%, the same as last month's expectations.

Economist Joanne Hsu, director of consumer studies at the University of Michigan, said in a statement: 'Consumers remain concerned about the potential for worsening inflationary pressures in the future... A growing proportion of consumers reported that current buying conditions are favorable to avoid future price increases.'

Households' outlook on their financial situation and the overall economy improved. The index of conditions for buying durable goods rose to its highest level since last October.

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