Reading time ( words)
The Conference Board Consumer Confidence Index rebounded in July, following a decrease in June. The Index now stands at 135.7 (1985=100), up from 124.3 in June. The Present Situation Index – based on consumers’ assessment of current business and labor market conditions – increased from 164.3 to 170.9. The Expectations Index – based on consumers’ short-term outlook for income, business and labor market conditions – increased from 97.6 last month to 112.2 this month.
“After a sharp decline in June, driven by an escalation in trade and tariff tensions, Consumer Confidence rebounded in July to its highest level this year,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “Consumers are once again optimistic about current and prospective business and labor market conditions. In addition, their expectations regarding their financial outlook also improved. These high levels of confidence should continue to support robust spending in the near-term despite slower growth in GDP.”
The monthly Consumer Confidence Survey®, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch. The cutoff date for the preliminary results was July 18.
Consumers’ assessment of present-day conditions improved in July. Those claiming business conditions are “good” increased from 37.5% to 40.1%, however, those saying business conditions are “bad” also increased slightly, from 10.6% to 11.2%. Consumers’ appraisal of the job market was also more favorable. Those saying jobs are “plentiful” increased from 44.0% to 46.2%, while those claiming jobs are “hard to get” declined from 15.8% to 12.8%.
Consumers were more optimistic about the short-term outlook in July. The%age of consumers expecting business conditions will be better six months from now increased from 19.1% to 24.0%, while those expecting business conditions will worsen declined from 12.6% to 8.7%.
Consumers’ outlook for the labor market was also more upbeat. The proportion expecting more jobs in the months ahead increased from 17.5% to 20.5%, while those anticipating fewer jobs decreased from 13.9% to 11.5%. Regarding their short-term income prospects, the%age of consumers expecting an improvement increased from 20.5% to 24.7%, while the proportion expecting a decrease declined from 7.5% to 6.3%.
About The Conference Board
The Conference Board is the member-driven think tank that delivers trusted insights for what’s ahead. Founded in 1916, we are a non-partisan, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org.
Nielsen Holdings plc is a global performance management company that provides a comprehensive understanding of what consumers watch and buy. Nielsen's Watch segment provides media and advertising clients with Total Audience measurement services for all devices on which content — video, audio and text — is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry's only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen also provides its clients with analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries, covering more than 90% of the world’s population. For more information, visit www.nielsen.com.