US consumer confidence broadly unchanged in July

The Conference Board Consumer Confidence Index of the US remained broadly unchanged in July at 97.3, as compared with June’s 97.4. The July’s index was slightly above the market projections of 96. The Present situation index rose further in July to 118 from 116.6 in June, whereas the expectations index dropped slightly to 83.3 in July from June’s 84.6.

“Consumer confidence held steady in July, after improving in June. Consumers were slightly more positive about current business and labor market conditions, suggesting the economy will continue to expand at a moderate pace. Expectations regarding business and labor market conditions, as well as personal income prospects, declined slightly as consumers remain cautiously optimistic about growth in the near-term”, said The Conference Board Director of Economic Indicators Lynn Franco.

The assessment of present-day conditions of consumers rebounded a bit in July. Consumers expecting good business conditions rose to 28.1 percent; but the ones stating bad conditions also increased to 19 percent in July. Meanwhile, consumers’ assessment of the labor market was slightly changed from June. Consumers stating that jobs are plentiful dropped slight to 23 percent, but the ones claiming jobs are difficult to get also fell to 22.3 percent.

Optimism of consumers about the short-term outlook was a bit less favorable in July. The ratio of consumers anticipating business conditions to rebound in the coming six months fell to 15.9 percent from 16.6 percent, whereas the ones anticipating business conditions to deteriorate further rose to 12.3 percent.

Meanwhile, consumers’ outlook for labor market was slightly more favorable in July than in June. The percent of consumers anticipating additional jobs in the coming months was flat at 14 percent, whereas those expecting fewer jobs dropped to 17 percent from 17.7 percent. The ratio of consumers anticipating their incomes to rise fell to 16.6 percent from 18.2 percent; but the ratio anticipating a decline also fell, dropping to 10.8 percent from 11.3 percent.