The Conference Board Consumer Confidence Index, which improved in June, increased again in July. The Index now stands at 90.9, up from 86.4 the month before.
The Present Situation Index increased to 88.3 from 86.3, while the Expectations Index that gauges attitudes about the future rose to 92.7 from 86.4 in June.
“Consumer confidence increased for the third consecutive month and is now at its highest level since October 2007 (95.2),” says Lynn Franco, director of economic indicators at The Conference Board. “Strong job growth helped boost consumers’ assessment of current conditions, while brighter short-term outlooks for the economy and jobs, and to a lesser extent personal income, drove the gain in expectations.
Franco predicts that growth “is likely to continue into the second half of this year.”
Consumers’ assessment of current conditions
Those claiming business conditions are “good” edged down to 22.7 percent from 23.4 percent, while those stating business conditions are “bad” was virtually unchanged at 22.7 percent.
Consumers’ appraisal of the job market was more favorable. Those saying jobs are “plentiful” increased to 15.9 percent from 14.6 percent, while those claiming jobs are “hard to get” remained unchanged at 30.7 percent.
The percentage of consumers expecting business conditions to improve over the next six months increased to 20.2 percent from 18.4 percent, while those expecting business conditions to worsen held steady at 11.5 percent.
Consumers were more positive about the outlook for the labor market. Those anticipating more jobs in the months ahead increased to 19.1 percent from 16.3 percent, while those anticipating fewer jobs declined to 16.4 percent from 18.4 percent.
Slightly more consumers expect their incomes to grow: 17.3 percent in July versus 16.7 percent in June. Those expecting a drop in their incomes declined to 11.0 percent from 11.4 percent.
Nielsen conducts the monthly Consumer Confidence Survey for The Conference Board. The cutoff date for the preliminary results was July 17.