Consumers were more confident about the economy in July than they have been in at least six years, data from The Conference Board showed on Tuesday, as stock markets float near record highs and expectations build for the recovery.
The Conference Board’s Consumer Confidence Index rose to 90.9, above the prior month’s showing of 86.4. That was the component’s highest since October 2007, and well above economists expectations of an 85.3 reading, according to a consensus survey.
The Present Situation index jumped to 88.3 from 86.3, while the gauge of future expectations rose to 92.7 from 86.4.
“There was also further encouraging news for the labor market as the so-called labor differential became less negative indicating better prospects for unemployment readings,” said Andrew Wilkinson, chief market analyst at Interactive Brokers.
By that metric, “those saying jobs were plentiful rose, while those claiming jobs were hard to get remained static in July. The result was a fall to the lowest level in six years for the labor differential,” he added.