United States: Consumer confidence soars to pre-crisis high
July 29, 2014
The Conference Board consumer confidence index rose from 86.4 points in June (previously reported: 85.2 points) to 90.9 points in July. The reading, which far exceeded market expectations of a fall to 85.5 points, marked the highest point since October 2007.
July’s rise in confidence was driven in part by more positive consumer assessments of current economic conditions. Moreover, there was a notable rise in consumers’ expectations regarding their personal finances over the next 12 months and their outlook on the future job market.
The director of the Board explained that, “strong job growth helped boost consumers’ assessment of current conditions, while brighter short-term outlooks for the economy and jobs, and to a lesser extent personal income, drove the gain in expectations. Recent improvements in consumer confidence, in particular expectations, suggest the recent strengthening in growth is likely to continue into the second half of this year.”
Author: Carl Kelly, Economist