United States: U.S. consumers appear unaffected by Brexit news
July 26, 2016
The consumer confidence indicator published by Conference Board ticked down from 97.4 in June to 97.3 in July, remaining near the highest level that has been registered since October 2015. July’s print fared better than market expectations of a drop to 96.0, which suggests that Brexit fears were overdone and that U.S. consumer spending will continue undeterred.
That said, despite the better-than-expected headline result, the details show moderate softness. The survey’s forward-looking expectations sub-component weakened over the previous month, which suggests that U.S. consumers reported less optimism regarding the overall economic situation in the near-term. This result offset an improvement in consumers’ perceptions of current conditions.
According to the Conference Board, “consumers were slightly more positive about current business and labor market conditions, suggesting the economy will continue to expand at a moderate pace. Expectations regarding business and labor market conditions, as well as personal income prospects, declined slightly as consumers remain cautiously optimistic about growth in the near-term.”
Author: Ricardo Aceves, Senior Economist