US Consumer Confidence Rises in July
US consumer confidence improved in July as concerns about the broader economic outlook began to ease. The Conference Board’s confidence index rose to 97.2 from 95.2, slightly above the median forecast of 96. The increase came as President Donald Trump signed a major budget bill into law earlier this month, making 2017 tax cuts permanent and providing incentives for business investment.
However, not all data reflected strength. The present situation index dropped to 131.5, and the share of consumers saying jobs are “hard to get” climbed to 18.9% — the highest since 2020. Although the percentage reporting that jobs are “plentiful” also rose, the gap between the two, a closely watched measure of labor market strength, was the narrowest since March 2021.
Looking ahead, the expectations index rose to 74.4, its highest level since February, signaling improving sentiment about future conditions. While some consumers are optimistic about the economic boost from recent legislation, many remain cautious due to high tariffs and inflation risks. Separate data showed job openings dipped in June, yet still point to generally stable hiring demand.
Economists forecast that inflation may accelerate in the coming months, while inflation-adjusted consumer spending likely stayed flat in June. Still, rising stock markets appear to have supported confidence, as reflected in the University of Michigan’s preliminary survey for July. The Conference Board survey also found more consumers expect their income to rise in the next six months — a potentially encouraging sign for future spending.
Source: Newsmaker.id
