Consumer Sentiment Remained Elevated in July

Wells Fargo Research Team Wells Fargo

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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Wells Fargo Research Team

Wells Fargo

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