A report from the University of Michigan revealed on Friday the preliminary reading for the Reuters/Michigan index of consumer sentiment rose to 98.4 in early July.

Economists had expected the index would increase to 98.5 this month from June’s final reading of 98.2.

According to the report, the index of current U.S. economic conditions edged down to 111.1 in July from 111.9 in the previous month. Meanwhile, the index of consumer expectations rose to 90.1 this month from 89.3 in June.

The Consumer Expectations Index falls as inflation expectations rise, signifying that consumers view higher inflation as a threat to economic growth, the report said. Higher inflation was related more frequently to rising interest rates and was associated with higher unemployment expectations.