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The Conference Board Consumer Confidence Index® increased marginally in July, following a modest decline in June. The Index now stands at 127.4 (1985=100), up from 127.1 in June. The Present Situation Index improved from 161.7 to 165.9, while the Expectations Index declined from 104.0 last month to 101.7 this month.
“Consumer confidence gained marginal ground in July, after a modest decline in June,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “Consumers’ assessment of present-day conditions improved, suggesting that economic growth is still strong. However, while expectations continue to reflect optimism in the short-term economic outlook, back-to-back declines suggest consumers do not foresee growth accelerating.”
Consumers’ assessment of current conditions improved further in July. Those stating business conditions are “good” increased from 37.2% to 38.0%, while those saying business conditions are “bad” declined from 11.5% to 10.1%. Consumers’ assessment of the labor market was also more favorable. Those claiming jobs are “plentiful” increased from 40.4% to 43.1%, while those claiming jobs are “hard to get” was virtually unchanged at 15.0%.
Consumers’ optimism about the short-term outlook waned again in July. The percentage of consumers anticipating business conditions will improve over the next six months increased from 20.7% to 23.1%, but those expecting business conditions will worsen also rose, from 9.3% to 10.8%.
Consumers’ outlook for the labor market was also mixed. The proportion expecting more jobs in the months ahead increased from 20.0% to 22.5%, but those anticipating fewer jobs also increased, from 13.1% to 15.7%. Regarding their short-term income prospects, the percentage of consumers expecting an improvement rose from 19.7% to 20.8%, but the proportion expecting a decrease also rose, from 7.9% to 9.2%.
About The Conference Board
The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: To provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society. Winner of the Consensus Economics 2016 Forecast Accuracy Award (U.S.), The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States.
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