Recent data from the University of Michigan indicates a positive shift in consumer sentiment, reaching a five-month high of 61.8 in July. This increase comes despite ongoing concerns over tariffs, with Americans becoming less anxious about trade wars and inflation. The outlook for inflation has dropped to pre-tariff levels, suggesting a growing belief that inflation will not spike again. Additionally, consumer confidence has shown resilience, improving for the second consecutive month, even as inflation rates remain a concern. Overall, the latest surveys reflect a stabilizing economy, with consumer sentiment showing signs of recovery.