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U.S. Consumer Comfort Advances to Fresh 18-Year High

U.S. Consumer Comfort Advances to Fresh 18-Year High

(Bloomberg) -- Sentiment among American consumers climbed last week to a fresh 18-year high on increased optimism about the buying climate and U.S. economy.

The Bloomberg Consumer Comfort Index advanced 1.2 points to 63.8 in the week ended July 7, just 5.2 points shy of its highest level in 33 years of weekly records. A gauge of views on the national economy was the strongest since early 2001, while a measure of the buying climate registered its best reading since January 2000.

Key Insights

  • The confidence figures follow a government report last week that showed a larger-than-forecast 224,000 jump in June employment and steady wage growth. What’s more, a stock market rally and low retail inflation are contributing to consumer optimism.
  • The comfort index of the buying climate inched up to 54.7 last week from 54.2. The measure of sentiment about the economy jumped to 69.1 from 66.8.
  • Brighter views about the economy may reflect relief that President Donald Trump recently dialed back on the threat of more U.S. tariffs on Chinese goods.
  • This week’s Bloomberg survey consists of interviews from Monday, July 1, to Sunday, July 7 (instead of Tuesday-Sunday as is customary). No interviews were conducted on the July 4 holiday.

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  • Measure of personal finances rose to 67.5 last week from 66.7 and is near a record.
  • The gauge for women rose to the highest since 2000 while the measure for single people was the highest since 2001.

To contact the reporter on this story: Ryan Haar in Washington at rhaar3@bloomberg.net

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

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