U.S. Consumer Confidence Unexpectedly Rises From Downwardly Revised Level

RTT Staff Writer•Tuesday, July 30, 2024•2 min read

A report released by the Conference Board on Tuesday showed consumer confidence in the U.S. unexpectedly improved from a downwardly revised level in the month of July.

The Conference Board said its consumer confidence index rose to 100.3 in July from a downwardly revised 97.8 in June.

Economists had expected the consumer confidence index to edge down to 99.5 from the 100.4 originally reported for the previous month.

“Confidence increased in July, but not enough to break free of the narrow range that has prevailed over the past two years,” said Dana M. Peterson, Chief Economist at The Conference Board.

She added, “Even though consumers remain relatively positive about the labor market, they still appear to be concerned about elevated prices and interest rates, and uncertainty about the future; things that may not improve until next year.”

The uptick by the headline index came as the expectations index jumped to 78.2 in July from 72.8 in June, although it remains below 80, which is the threshold which usually signals a recession ahead.

At the same time, the Conference Board said the present situation index slipped to 133.6 in July from 135.3 in the previous month.

“Compared to last month, consumers were somewhat less pessimistic about the future,” said Peterson. “Expectations for future income improved slightly, but consumers remained generally negative about business and employment conditions ahead.”

“Meanwhile, consumers were a bit less positive about current labor and business conditions,” she continued. “Potentially, smaller monthly job additions are weighing on consumers’ assessment of current job availability.”

Last Friday, the University of Michigan released revised data showing consumer sentiment in the U.S. deteriorated by slightly less than previously estimated in the month of July.

The report said the consumer sentiment index for July was upwardly revised to 66.4 from the preliminary reading of 66.0. Economists had expected the reading to be unrevised.

Despite the upward revision, the consumer sentiment index for July is still down from 68.2 in June and marks the lowest reading since November 2023.

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