The U.S. consumer confidence index hit a two-year high in July amid eased inflation and the U.S. economy showing resilience despite high interest rates.
According to the Associated Press on the 25th (local time), the U.S. Conference Board announced that the consumer confidence index in July was 117.
The figure beat expert forecasts of 110.5, the highest since July 2021. The consumer confidence index stood at 110.1 in June.
Both the current conditions index, the U.S. assessment of current economic conditions, and the expectation index, the outlook for the next six months, improved in July.
In particular, the expectation index rose to 88.3, far exceeding 80 indicating an imminent economic recession. The index hit 80 in June.
The U.S. economy is showing considerable resilience despite a high-interest rate march.
In the first half of this year, the number of jobs in the United States was 278,000, which is still maintained at a high level. The unemployment rate stood at 3.6 percent, slightly down from the previous seven-month high of 3.7 percent in May.
The Associated Press reported that easing inflation and a solid job market are raising hopes that the U.S. economy will be able to make a soft landing without falling into a recession.
“Expectations for the next six months have improved significantly, reflecting greater confidence in economic conditions and employability,” said Dana Peterson, chief economist at the conference board. “It seems to reveal consumers’ belief that the labor market situation will remain favorable.”
The Conference Board’s Confidence Index (announced monthly) and the University of Michigan Consumer Sentiment Index (announced twice a month) are representative indicators of consumer sentiment about the current and future U.S. economy. Because consumer spending accounts for about 70 percent of U.S. economic activity, experts tend to keep an eye on the index that represents American sentiment.
