WASHINGTON, July 18 (Xinhua) -- U.S. consumer sentiment was virtually unchanged in July, according to preliminary data released Friday by the University of Michigan.

The widely watched consumer sentiment index inched up marginally to 61.8 from the previous month's 60.7.

While sentiment reached its highest value in five months, it remains a substantial 16 percent below December 2024 and is well below its historical average, the report found.

Short-run business conditions improved about 8 percent, whereas expected personal finances fell back about 4 percent.

"Consumers are unlikely to regain their confidence in the economy unless they feel assured that inflation is unlikely to worsen, for example if trade policy stabilizes for the foreseeable future," said Joanne Hsu, director of the University of Michigan's monthly Surveys of Consumers.

"At this time, the interviews reveal little evidence that other policy developments, including the recent passage of the tax and spending bill, moved the needle much on consumer sentiment," Hsu said.

Year-ahead inflation expectations fell for a second straight month, plunging from 5 percent last month to 4.4 percent this month.

Long-run inflation expectations receded for the third consecutive month, falling back from 4 percent in June to 3.6 percent in July.

Both readings are the lowest since February 2025 but remain above December 2024, "indicating that consumers still perceive substantial risk that inflation will increase in the future," Hsu said. ■