Consumer confidence in US hikes 2.5 points in July

(MENAFN) On Tuesday, The Conference Board, based in New York, reported a significant increase in U.S. consumer confidence for July. The consumer confidence index, which serves as a leading indicator of consumer spending and economic activity, climbed 2.5 points to reach 100.3 in July. This increase was slightly higher than market expectations of 99.7, signaling a stronger-than-anticipated boost in consumer sentiment.

The index for June, however, was notably revised downward from an initial reading of 100.4 to 97.8. This revision reflects a more subdued consumer outlook in the previous month than initially reported. The July increase suggests an improvement in consumer optimism compared to the revised June figures.

Dana Peterson, chief economist at The Conference Board, noted that consumers were somewhat less pessimistic about future economic conditions compared to the previous month. While there remains a generally positive view regarding the labor market, consumers continue to express concerns about high prices, interest rates, and overall economic uncertainty—factors that may not improve until the following year. Despite a slight improvement in expectations for future income, consumers' outlook on business and employment conditions remains largely negative.

In terms of inflation expectations, consumers' average 12-month forecast remained steady at 5.4 percent, unchanged from the previous month. This stability in inflation expectations reflects ongoing concerns about cost pressures, even as overall consumer confidence shows signs of improvement.

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