Source: Sharecast
The Conference Board’s consumer confidence index rose to 97.2 from an upwardly-revised 95.2 in June, beating expectations for a reading of 95.4. The figure for June was revised up by 2.2 points.
Meanwhile, the present situation index fell 1.5 points to 131.5 this month, while the expectations index rose 4.5 points to 74.4.
Expectations remained below the threshold of 80 that typically signals a recession ahead for the sixth month in a row.
Stephanie Guichard, senior economist, Global Indicators, at the Conference Board, said: "Consumer confidence has stabilised since May, rebounding from April’s plunge, but remains below last year’s heady levels.
"In July, pessimism about the future receded somewhat, leading to a slight improvement in overall confidence. All three components of the expectation index improved, with consumers feeling less pessimistic about future business conditions and employment, and more optimistic about future income. Meanwhile, consumers’ assessment of the present situation was little changed.
"They were a tad more positive about current business conditions in July than in June. However, their appraisal of current job availability weakened for the seventh consecutive month, reaching its lowest level since March 2021. Notably, 18.9% of consumers indicated that jobs were hard to get in July, up from 14.5% in January."
Guichard said consumers’ write-in responses showed that tariffs remained top of mind and were mostly associated with concerns they would lead to higher prices. She also said that references to high prices and inflation rose in July, even though consumers’ average 12-month inflation expectations eased slightly to 5.8% from 5.9% in June and a peak of 7% in April.