After slowly retrenching over the last several months, consumer confidence took a leap of faith once again in July hitting the second highest reading since topping in March, explained analysts from Wells Fargo.
Key Quotes:
“The U.S. consumer remained upbeat in July according to the Conference Board’s consumer confidence measure. The Consumer Confidence Index increased to 121.1 from a downwardly revised reading of 117.3 in June. Both the present situation as well as the expectations indices improved in July.”
“The present situation index improved to 147.8 in July from 143.9 in June while the expectations index increased to 103.3 from 99.6. This last one, the expectations index, is the most volatile of the components of the Consumer Confidence Index and was the culprit for the decline in June.”
“Thus, July was the first time in several months where both of the broadest components of the index increased together, which is a good sign for the U.S. economy and for the consumer.”
“The Consumer Confidence Index in July was the second highest reading in 16 years, second only to March’s reading of 124.9. This underscores the important changes occurring in U.S. consumer confidence after several years of weak readings.”
“Much of the improvement in consumer confidence has yet to be translated into consumer demand, even though we are still expecting this improvement in confidence to help push consumer demand higher.”
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