Consumer confidence gained more than expected in July, but consumers remained concerned about future economic growth.
The Confidence Board’s index increased to 127.4 in July, beating an estimated 126.5 by Reuters economists. The index was up from a disappointing revised reading of 127.1 in June, sunken by lower income prospects.
Consumers reported better feelings toward the current economic situation; however, they were not optimistic about long-term growth.
“Consumers’ assessment of present-day conditions improved, suggesting that economic growth is still strong, said Director of Economic Indicators at The Conference Board Lynn Franco. “However, while expectations continue to reflect optimism in the short-term economic outlook, back-to-back declines suggest consumers do not foresee growth accelerating.”
The survey measures American’s sentiment on current economic conditions and prospects for the next six months, including business and labor market conditions. Since consumer spending accounts for about 70 percent of U.S. economic activity, economists’ pay close attention to the number.