Here is your monthly data digest on the context for public relations in Iowa and beyond, covering recent research headlines across consumer and business sentiment.
Consumer Sentiment: A Mixed Bounce Back
After sliding deeply into a pessimism trough earlier in the summer, July consumer data showed a measurable rebound, though household anxieties around legacy inflation remain prominent.
- Michigan Sentiment Rebounds: The University of Michigan’s final Consumer Sentiment Index for July climbed to 55.2, representing an increase of nearly 12% over June’s reading. Surveys Director Joanne Hsu noted that broad-based improvements appeared across income, wealth, and political demographics.
- The Persistent Inflation Shadow: Despite the month-over-month uptick, sentiment remains roughly 11% lower than a year ago. Five-year implied inflation expectations held steady at 3.3%, remaining elevated compared to pre-2025 ranges, with consumers continuing to anchor their concerns tightly around daily purchasing power and gasoline costs.
- Conference Board Divergence: In contrast to the University of Michigan’s findings, The Conference Board’s Consumer Confidence Index ticked down slightly to 90.8 in July (from an upwardly revised 92.2 in June), driven primarily by its Present Situation Index experiencing its third consecutive monthly decline.
Business Sentiment: AI Momentum vs. Cost Pressures
Economic indicators for July reflect solid private-sector growth, heavily buoyed by technology infrastructure, alongside lingering cost concerns.
- S&P Global PMI Expansion: The flash S&P Global Market Intelligence Purchasing Managers’ Index rose 1.7 points to 53.6 in July, signaling solid private-sector expansion. The increase was primarily driven by the future output index, which hit its highest level since September 2025.
- The AI Capital Tailwind: Fixed investment and corporate spending on machinery, equipment, and massive data center infrastructure continue to act as primary pillars of economic growth, with the rapid expansion of the artificial intelligence ecosystem supporting ongoing capital expenditure.
- Renewed Cost Pressures: Both input and output price indices ticked upward in July, reflecting renewed cost pressures stemming from supply-side factors and regional energy shifts. Consequently, macro forecasts project the Federal Reserve will maintain steady benchmark rates through the remainder of the year.
Institutional Trust: Gallup Lows and Nonprofit Resilience
Newly released research from July highlights a continuing polarization of institutional trust, contrasted with a rare bright spot in civil society.
- Institutional Trust Near All-Time Lows: Gallup’s annual institutional confidence tracking revealed that average confidence across 14 core U.S. institutions sits at 27%, hovering just one point above historical record lows. Mirroring long-term trends, 12 of the 14 tracked institutions remain at or near their historical baselines.
- Big Tech Confidence Drops: Unique among tracked entities, confidence in large technology companies dropped significantly, with the percentage of Americans expressing “very little or no confidence” rising from 32% in 2025 to 41% in July 2026.
- Nonprofits Stand as a Common Ground: A major study released by Independent Sector and Edelman Data & Intelligence showed that 56% of Americans maintain high trust in nonprofit organizations. Nonprofits remain the most trusted institutional category—outranking government, corporations, and news media—with half of respondents noting that nonprofits actively help bridge societal divisions.