The final reading for the July Reuters/Michigan index of consumer sentiment rose to 93.4 from a preliminary reading of 93.1 but fell from a final reading of 95.1 for June. That was the lowest reading since October of 2016. Economists had forecast the index to be unrevised.

According to the report, the index of the current economic conditions rose to 113.4 from the preliminary reading of 113.2 and June's final reading of 112.5. The gain was mainly due to improvements in consumers' personal finances.

Meanwhile, the index of consumer expectations increased to 80.5 from the preliminary reading of 80.2, but remained below June's final reading for June was 83.9. The report noted that expectations continued to be significantly influenced by political partisanship, and if the expectations index continues to decline by another 10 points in the second half of 2017, the loss would become more worrisome.

Despite small decline in July, the sentiment index still keeps higher in the first seven months of 2017 than in any other year since 2004, the report noted.