The university's final consumer sentiment index fell in July to its lowest level since November 2001, to 88.1 from 92.4 in June.
That number was better than economists' forecasts for 86.5, where the index stood at mid-month.
Analysts are closely watching indexes of consumer confidence for clues on whether consumer spending, which drives about two-thirds of the economy, will maintain its strength.
So far spending has held up despite a slide in sentiment.
The preliminary current conditions index, which tracks consumers' views about their present financial situation, was little changed in July, off at 99.3 from 99.5 in June. The preliminary July index read 99.0.
The expectations index, which measures attitudes about the 12 months ahead, fell to 81.0 in July from 87.9 in June but was up markedly from a preliminary reading of 78.5.