Consumer confidence inches higher but….
Consumer confidence increased in July, however consumers remain wary about future economic growth.
The Consumer Confidence Index now stands at 127.4, up from 127.1 in June, according to The Confidence Board. The “present situation” index increased from 161.7 to 165.9, while the “expectations” index declined from 104.0 last month to 101.7 this month.
“Consumer confidence gained marginal ground in July, after a modest decline in June,” said Lynn Franco, director of economic indicators at The Conference Board. “Consumers’ assessment of present-day conditions improved, suggesting that economic growth is still strong. However, while expectations continue to reflect optimism in the short-term economic outlook, back-to-back declines suggest consumers do not foresee growth accelerating.”
Consumers’ assessment of current conditions improved further in July. Those claiming business conditions are “good” increased from 37.2% to 38.0%, while those saying business conditions are “bad” declined from 11.5% to 10.1%.
Consumers’ assessment of the labor market was also more favorable. Those claiming jobs are “plentiful” increased from 40.4% to 43.1%, while those claiming jobs are “hard to get” was virtually unchanged at 15.0%.
Consumers’ optimism about the short-term outlook waned again in July. The percentage of consumers anticipating business conditions will improve over the next six months increased from 20.7% to 23.1%, but those expecting business conditions will worsen also rose, from 9.3% to 10.8%.
Regarding their short-term income prospects, the percentage of consumers expecting an improvement rose from 19.7% to 20.8%, but the proportion expecting a decrease also rose, from 7.9% to 9.2%.
The Consumer Confidence Index now stands at 127.4, up from 127.1 in June, according to The Confidence Board. The “present situation” index increased from 161.7 to 165.9, while the “expectations” index declined from 104.0 last month to 101.7 this month.
“Consumer confidence gained marginal ground in July, after a modest decline in June,” said Lynn Franco, director of economic indicators at The Conference Board. “Consumers’ assessment of present-day conditions improved, suggesting that economic growth is still strong. However, while expectations continue to reflect optimism in the short-term economic outlook, back-to-back declines suggest consumers do not foresee growth accelerating.”
Consumers’ assessment of current conditions improved further in July. Those claiming business conditions are “good” increased from 37.2% to 38.0%, while those saying business conditions are “bad” declined from 11.5% to 10.1%.
Consumers’ assessment of the labor market was also more favorable. Those claiming jobs are “plentiful” increased from 40.4% to 43.1%, while those claiming jobs are “hard to get” was virtually unchanged at 15.0%.
Consumers’ optimism about the short-term outlook waned again in July. The percentage of consumers anticipating business conditions will improve over the next six months increased from 20.7% to 23.1%, but those expecting business conditions will worsen also rose, from 9.3% to 10.8%.
Regarding their short-term income prospects, the percentage of consumers expecting an improvement rose from 19.7% to 20.8%, but the proportion expecting a decrease also rose, from 7.9% to 9.2%.