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U.S. Consumer Confidence Rises as Economic Optimism Holds Up

Uptick in consumer confidence as Americans grew more upbeat about the economy and the labor market.

U.S. Consumer Confidence Rises as Economic Optimism Holds Up
A customer pushes a shopping cart down an aisle at an E-Mart Inc. Traders store in the Starfield Hanam shopping complex, operated by Shinsegae Co., in Hanam, Gyeonggi, South Korea (Photographer: SeongJoon Cho/Bloomberg)

(Bloomberg) -- U.S. consumer confidence increased modestly in July as Americans grew more upbeat about the economy and labor market, figures from the New York-based Conference Board showed Tuesday.

Highlights of Consumer Confidence (July)

  • Confidence index rose to 127.4 (est. 126) from 127.1 in June (prev. 126.4)
  • Present conditions measure increased to a 17-year high of 165.9 from a revised 161.7
  • Consumer expectations gauge slipped for a second month, falling to 101.7 from 104
  • Gauge of 12-month inflation expectations climbed to highest since October 2015

Key Takeaways

A currently healthy labor market and robust economic growth offset consumer concerns in July about how trade tensions will affect jobs and prices in coming months. The economy accelerated to a 4.1 percent pace of growth in the second quarter, the fastest since 2014.

Plans to buy autos within the next six months edged up from a two-year low, while a gauge of home purchase expectations declined to the lowest level in two years. Mortgage rates in the U.S. have been hovering near a seven-year high.

U.S. Consumer Confidence Rises as Economic Optimism Holds Up

Economist Views

“Consumers’ assessment of present-day conditions improved, suggesting that economic growth is still strong,” Lynn Franco, director of economic indicators at the Conference Board, said in a statement. “However, while expectations continue to reflect optimism in the short-term economic outlook, back-to-back declines suggest consumers do not foresee growth accelerating.”

Other Details

  • 23.1 percent of consumers said they expect better business conditions in next six months, up from 20.7 percent in June, while those seeing worse conditions also climbed
  • Share who said more jobs will be available in coming months climbed to 22.5 percent from 20 percent, while those seeing fewer jobs rose to a seven-month high

To contact the reporter on this story: Reade Pickert in Washington at epickert@bloomberg.net

To contact the editors responsible for this story: Brendan Murray at brmurray@bloomberg.net, Jeff Kearns, Vince Golle

©2018 Bloomberg L.P.