Last Update: 29-Jul-14 10:15 ET
- The Conference Board’s Consumer Confidence Index spiked to 90.9 in July from an upwardly revised 86.4 (from 85.2) in June. The Briefing.com consensus pegged the Consumer Confidence Index at 85.6.
- Consumer confidence is now at its highest level since October 2007.
- The Present Situation Index increased to 88.3 in July from 86.3 in June. The Expectations Index rose to 92.7 in July from 86.4 in June.
- Historically high equity prices, a reduction in gasoline costs, and improvements in labor conditions all worked in conjunction to boost confidence. However, there was some concern that confidence levels would remain stagnant because the similarly measured University of Michigan Consumer Sentiment Index declined slightly in its preliminary reading.
- The strong confidence reading does not necessarily mean that an acceleration in consumption growth is forthcoming. Consumption gains rely on income growth. As long as the improvements in overall labor conditions translate into increased wages, consumption growth will follow.
- Income gains are the main catalyst for spending, yet rising levels of confidence over time tend to help on the margin.
|Employment ('plentiful' less 'hard to get')
|1 yr inflation expectations