Consumer Confidence Little Changed, Near Five-Month High
Consumer confidence was little changed in July as Americans remained positive about the job market and the business environment, according to a report from the New York-based Conference Board on July 26.
Key Points
• Confidence index eased to 97.3 from a revised 97.4 in June, which was the highest since January; median forecast in a Bloomberg survey of economists was 96.
• Measure of consumer expectations for the next six months dipped to 83.3 from 84.6.
• Present conditions gauge climbed to 118.3, the highest since September, from 116.6 in June.
Big Picture
• Consumer sentiment has stabilized despite growing uncertainty over global development and the U.S. elections. That bodes well for household spending, which accounts for almost 70% of the economy.
Economist Takeaways
"Consumers were slightly more positive about current business and labor market conditions, suggesting the economy will continue to expand at a moderate pace," Lynn Franco, director of economic indicators at the Conference Board, said in a statement.
The Details
• Consumers were a little more optimistic about jobs, and some 14% said more jobs will be available in six months, up from 13.9% in June.
• The share of Americans who see their incomes increasing in the next six months fell to 16.6% from 18.2%.
• The report also showed 15.9% of respondents said they saw an improvement in business conditions in the next six months, down from 16.6% last month.
• Plans for buying major appliances and homes improved, while fewer respondents indicated they plan to buy an automobile in the next six months.
