Please ensure Javascript is enabled for purposes of website accessibility
U.S. Consumer Confidence Jumps to a Two-Year High as Inflation Eases
gvw_ap_news
By Associated Press
Published 9 months ago on
July 25, 2023

Share

WASHINGTON — U.S. consumer confidence shot to the highest level in two years this month as inflationary pressures eased and the American economy continued to show resilience in the face of dramatically higher interest rates.

The Conference Board, a business research group, said its consumer confidence index rose to 117 in July from a revised 110.1 in June. The gauge beat the 110.5 that economists had expected and was the highest since July 2021.

The index measures both Americans’ assessment of current economic conditions and their outlook for the next six months. Both improved in July. The future expectations index rose to 88.3 in July, clearing the recession threshold of 80 recorded in June.

Economists closely monitor Americans’ spirits because consumer spending accounts for around 70% of U.S. economic activity. The Conference Board index fell more or less steadily from mid-2021 to mid-2022 as surging prices ate into household budgets.

But confidence has come back, in fits and starts, over the past year as inflation eased in the face of 10 interest-rate hikes by the Federal Reserve. Fed policymakers are expected to raise their benchmark rate again Wednesday to the highest level in 22 years.

The U.S. economy — the world’s largest — has proved surprisingly resilient in the face of sharply higher borrowing costs. Employers are adding a strong 278,000 jobs a month so far this year; and at 3.6% in June, the unemployment rate is not far off a half-century low.

Tumbling inflation and sturdy hiring have raised hopes the Fed just might pull off a so-called soft landing — slowing the economy just enough to tame inflation without tipping the United States into recession.

“Expectations for the next six months improved materially, reflecting greater confidence about future business conditions and job availability,” said Dana Peterson, the Conference Board’s chief economist. “This likely reveals consumers’ belief that labor market conditions will remain favorable.”

RELATED TOPICS:

DON'T MISS

Coalition: CA Lawmakers Need to Roll Back Proposed ‘Utility Tax’

DON'T MISS

CA’s High Construction Costs Limit Housing. A Supreme Court Decision Might Help

DON'T MISS

Now’s the Time to Register for FUSD’s Free Preschool and T-K

DON'T MISS

‘Hopeville’ Literacy Documentary Showing Tonight at Roosevelt High

DON'T MISS

Michigan Faces Probation for Football Recruiting Violations; Case vs. Jim Harbaugh Pending

DON'T MISS

What Winnie the Pooh and Mickey Mouse Can Tell Us About the Public Domain and Remix Culture

DON'T MISS

Acquisition of Historic Fresno Real Estate Brand Creates Area’s Largest Brokerage

DON'T MISS

Wall Street’s Mixed Trading Day

DON'T MISS

It’s ‘Signing Day’ for These Clovis Unified Youngsters

DON'T MISS

Clovis Armed Robbery and Pursuit Result in 3 Arrests, 1 Suspect Still at Large

UP NEXT

Wall Street’s Mixed Trading Day

UP NEXT

Fresno Coin Gallery Owner Reveals Why Gold & Silver Are Hot Investments

UP NEXT

Biden’s Embrace of Trump’s Tariffs Could Spell Trouble for His Reelection: Fareed Zakaria

UP NEXT

Ship That Caused Bridge Collapse Had Apparent Electrical Issues While Still Docked, Source Says

UP NEXT

How California Legislators Got More Than $1.4 Million in Travel and Gifts in 2023

UP NEXT

US Shoots Down Iran-Launched Attack Drones as Biden Team Pledges ‘Support’ for Israel

UP NEXT

US Intelligence Finding Shows China Surging Equipment Sales to Russia to Help War Effort in Ukraine

UP NEXT

Austin Tells Congress Israel Is Taking Steps to Boost Aid to Gaza as Lawmakers Question US Support

UP NEXT

Will China Flood the Globe With EVs, Green Tech? Latest on US-China Trade Fight

UP NEXT

JPMorgan’s Dimon Warns Inflation, Political Polarization, Wars Creating Risks Not Seen Since WWII

‘Hopeville’ Literacy Documentary Showing Tonight at Roosevelt High

Local Education /

4 hours ago

Michigan Faces Probation for Football Recruiting Violations; Case vs. Jim Harbaugh Pending

5 hours ago

What Winnie the Pooh and Mickey Mouse Can Tell Us About the Public Domain and Remix Culture

5 hours ago

Acquisition of Historic Fresno Real Estate Brand Creates Area’s Largest Brokerage

Breaking News /

5 hours ago

Wall Street’s Mixed Trading Day

5 hours ago

It’s ‘Signing Day’ for These Clovis Unified Youngsters

Local Education /

5 hours ago

Clovis Armed Robbery and Pursuit Result in 3 Arrests, 1 Suspect Still at Large

5 hours ago

Charges Against Trump and Jan. 6 Rioters at Stake as Supreme Court Hears Debate Over Obstruction Law

6 hours ago

Fresno Fire and Police Ramp up Probe Into Fires at Cemeteries

6 hours ago

New Recruiting Programs Put Army, Air Force on Track to Meet Enlistment Goals. Navy Will Fall Short

6 hours ago

Coalition: CA Lawmakers Need to Roll Back Proposed ‘Utility Tax’

A proposal to levy a fixed charge on customers of California’s big investor-owned utilities will harm low-income households, further l...

2 hours ago

2 hours ago

Coalition: CA Lawmakers Need to Roll Back Proposed ‘Utility Tax’

3 hours ago

CA’s High Construction Costs Limit Housing. A Supreme Court Decision Might Help

Local Education /
4 hours ago

Now’s the Time to Register for FUSD’s Free Preschool and T-K

Local Education /
4 hours ago

‘Hopeville’ Literacy Documentary Showing Tonight at Roosevelt High

5 hours ago

Michigan Faces Probation for Football Recruiting Violations; Case vs. Jim Harbaugh Pending

5 hours ago

What Winnie the Pooh and Mickey Mouse Can Tell Us About the Public Domain and Remix Culture

Breaking News /
5 hours ago

Acquisition of Historic Fresno Real Estate Brand Creates Area’s Largest Brokerage

5 hours ago

Wall Street’s Mixed Trading Day

MENU

CONNECT WITH US

Search

Send this to a friend