A report from the University of Michigan revealed on Friday the preliminary reading for the Reuters/Michigan index of consumer sentiment fell 6.3 percent m-o-m to 73.2 in early July.

Economists had expected the index would increase to 79.0 this month from June’s final reading of 78.1.

According to the report, the index of current U.S. economic conditions decreased 3.3 percent m-o-m to 84.2 in July from 87.1 in the previous month. Meanwhile, the index of consumer expectations declined 8.4 percent m-o-m to 66.2 this month from 72.3 in June.

The report noted: “Consumer sentiment retreated in the first half of July due to the widespread resurgence of the coronavirus… Unfortunately, declines are more likely in the months ahead as the coronavirus spreads and causes continued economic harm, social disruptions, and permanent scarring. Another aggressive fiscal response is urgently needed that focuses on financial relief for households as well as state and local governments.“