Consumer Confidence Grew in July

The Conference Board Consumer Confidence Index increased to 121.1 in July, rebounding from declines in the three preceding months. Last month’s index was downwardly revised from 118.9 to 117.3. The Present Situation Index rose 3.9 points to 146.3, the third consecutive monthly increase. The Expectations Index grew 3.7 points to 103.3 after declining in the three preceding months.

“Consumer confidence increased in July following a marginal decline in June,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “Consumers’ assessment of current conditions remained at a 16-year high (July 2001, 151.3) and their expectations for the short-term outlook improved somewhat after cooling last month. Overall, consumers foresee the current economic expansion continuing well into the second half of this year.”

Consumers’ labor market outlook improved in July. The percentage of consumers expecting more jobs in the coming months was unchanged at 19.2%, but the share anticipating fewer jobs decreased from 14.6% to 13.3%. Income expectations dipped, as 20.0% of consumers expected their incomes to increase in coming months, down from 20.9% in June.

Read the Conference Board release.