American consumers felt more confident in July as expectations over the near-term future rebounded. However, in a reversal of recent trends, feelings about current conditions weakened. The Conference Board, a business research group, said Tuesday that its consumer confidence index rose to 100.3 in July from a downwardly revised 97.8 in June. The index measures both Americans’ assessment of current economic conditions and their outlook for the next six months.
Quick Read
- American consumers felt more confident in July as expectations for the near-term future rebounded, while views on current conditions weakened
- The Conference Board’s consumer confidence index rose to 100.3 in July from a downwardly revised 97.8 in June
- The index measures Americans’ assessment of current economic conditions and their outlook for the next six months
- Americans’ short-term expectations for income, business, and the job market increased to 78.2 in July from 72.8 in June; a reading under 80 can signal a potential recession
- Consumers’ view of current conditions dipped to 133.6 in July from 135.3 in June
- Elevated prices for food and groceries remain the main driver of consumers’ economic views despite reduced inflation since the Fed’s interest rate hikes starting in March 2022
- Dana Peterson, The Conference Board’s chief economist, noted that concerns about elevated prices, interest rates, and future uncertainty may not improve until next year
- Home purchase plans fell to a 12-year low due to high interest rates, elevated home prices, and low supply
- The number of consumers predicting a recession increased slightly this month but remains below its 2023 peak
- Consumer spending, accounting for nearly 70% of U.S. economic activity, is closely watched by economists for insights into consumer sentiment
The Associated Press has the story:
American consumers feeling more confident in July as expectations of future improved
Newslooks- (AP)
American consumers felt more confident in July as expectations over the near-term future rebounded. However, in a reversal of recent trends, feelings about current conditions weakened. The Conference Board, a business research group, said Tuesday that its consumer confidence index rose to 100.3 in July from a downwardly revised 97.8 in June. The index measures both Americans’ assessment of current economic conditions and their outlook for the next six months.
The measure of Americans’ short-term expectations for income, business and the job market rose in July to 78.2 from 72.8 in June. A reading under 80 can signal a potential recession in the near future. Consumers’ view of current conditions dipped in July to 133.6, from 135.3 in June.
Elevated prices for food and groceries remain the main driver of consumers’ view of the U.S. economy. Though inflation has come down considerably since the Federal Reserve started boosting interest rates in March of 2022, price increases remain well above pre-pandemic levels. “Even though consumers remain relatively positive about the labor market, they still appear to be concerned about elevated prices and interest rates, and uncertainty about the future; things that may not improve until next year,” said Dana Peterson, The Conference Board’s chief economist.
The number of respondents who said they planned to purchase a home fell to a 12-year low as elevated interest rates, sky-high home prices and a lack of supply continue to discourage home shoppers. The number of consumers predicting a recession inched up this month but is still well of its 2023 peak, the board said. Consumer spending accounts for nearly 70% of U.S. economic activity and is closely watched by economists for signs how the American consumer is feeling.
