US consumer confidence unexpectedly improves in July
US consumer confidence unexpectedly rose to a four-month high in July, according to the latest data from the Conference Board.
The confidence index increased to 121.1 from 117.3 in June, beating expectations for a drop to 116.5
Meanwhile, the present situation index edged up to 147.8 from 143.9 and the expectations index rose to 103.3 in July from 99.6 the month before.
Lynn Franco, director of economic indicators at the Conference Board, said: " Consumers’ assessment of current conditions remained at a 16-year high (July 2001, 151.3) and their expectations for the short-term outlook improved somewhat after cooling last month. Overall, consumers foresee the current economic expansion continuing well into the second half of this year.”
Capital Economics pointed out that at 103.3, the expectations sub-index is broadly in line with its average since last November, when expectations surged in the wake of Trump's surprise election victory.
"The small rise in the Conference Board measure of consumer confidence takes it to its second highest reading in 16 years and suggests that consumption growth will accelerate in the second half of the year," said economist Michael Pearce.