Consumer Sentiment Remained Elevated in July
|At 98.4, consumer sentiment remained elevated. Confidence has been resilient in the face of trade uncertaintiy, but 10% tariffs on $300 billion of Chinese goods could be a concern. Personal finances were a bright spot.
Resilient Sentiment
- Consumer sentiment rose only slightly in July, but at 98.4 remains high. Earlier this week we learned consumer confidence rose to 135.7 in July. Both measures suggest a consumer that has remained resilient in the face of trade uncertainty.
- But, the recent announcement of 10% tariffs on an additional $300 billion of Chinese goods—which are mostly consumer products—may weigh on confidence in coming months.
Financial Optimism Suggests Willingness to Spend
- Expectations regarding personal financial situations rose to 137 in July, which marks the highest level since 2003. The elevated reading on both expected and current personal finances highlights a consumer that remains confident and willing to spend.
- Attitudes toward buying durable goods were little changed over the month, and remain near the highest level of the year. Recall that durable goods outlays surged nearly 13% annualized in Q2.
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