WASHINGTON (MarketWatch) -- U.S. consumer sentiment fell in July, according to a survey released Friday by the University of Michigan and Reuters, dragged down by a big drop in expectations about the economy.
Sentiment rose to a revised 66.0 from a reading of 64.6 in early July, but was down from the June reading of 70.8.
Economists surveyed by MarketWatch were expecting consumer sentiment to rise slightly to 65.5.
Analysts said the report highlights depressed levels of confidence as well as likely slow growth ahead.
"The July drop-back in confidence at still-depressed levels highlights the anemic pace of growth that appears likely as we enter the early quarters of the recovery," wrote Mike Englund of Action Economics in an email.
"While off the lows that were recorded when panic and paralysis were the order of the day, this measure of consumer sentiment nonetheless remains severely depressed," wrote Joshua Shapiro, chief U.S. economist of MFR, Inc., in an email.
Treasury prices remained lower Friday, pushing yields up, after the final reading of the index was released.
Both the current conditions and expectations readings fell in July, the survey found. Expectations plummeted to 63.2 from 69.2, while the current conditions number dropped to 70.5 from 73.2 in June.
The weaker expectations number is a sign of consumer worry about the economy, although it is up from 53.5 back in March.
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