Consumer confidence jumped to a six year high in July, according to the Conference Board's monthly survey, which was released this morning (July 31).
The Conference Board Consumer Confidence Index, rose to 112.6 (1985=100), up from 105.3 in June. The Present Situation Index increased to 139.2 from129.9 in June. The Expectations Index rose to 94.8 from 88.8.
"An improvement in business conditions and the job market has lifted consumers' spirits in July," said Lynn Franco, director of The Conference Board Consumer Research Center. "Looking ahead, consumers are more upbeat about short-term economic prospects, mainly the result of a decline in the number of pessimists, not an increase in the number of optimists. This rebound in confidence suggests economic activity may gather a little momentum in the coming months."
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The cutoff date for July's preliminary results was July 24th, before the stock market swoon that took place later in the week.
Consumers claiming conditions are "good" increased to 28.1% from 27.3% in June; those saying conditions are "bad" decreased to 14.4% from 16.1%.Consumers who said jobs are "hard to get" declined to 18.4% from 20.5%, and those who said jobs are "plentiful" improved to 30.5% from 27.6% in June.
Consumers who expect business conditions to worsen in the next six months declined to 8.0% from 10.8%, those who think business conditions will improve dropped to 15.4% from 16.2%.