2023-07-14 14:03:44
The preliminary consumer confidence index released by the University of Michigan on the 14th rose sharply to the highest level in regarding two years. Slowing inflation and a strong labor market boosted consumer sentiment.
Key Point Consumer Confidence Index (Preliminary) 72.6 – Highest since September 2021 – 8.2 points up from 64.4 last month – Strongest growth since 2006 Median economist forecast is 65.5 Inflation expectations 1 year ahead Inflation expectations rose to 3.4% (3.3% last month), and inflation expectations 5-10 years ahead were 3.1% (3.0% last month).
Source: University of Michigan
“The surge in sentiment is largely due to continued slowing inflation and a stable labor market,” said Joan Shu, director of consumer research at the University of Michigan, in a statement.
Interview with Joanne Shu, Director of Consumer Affairs, University of Michigan
Source: Bloomberg
The data showed that consumers expect the unemployment rate to remain low over the next year. A majority also expect income growth to at least match inflation.
An index of buying conditions for durable goods rose to a two-year high. Prospects for households also hit a two-year high.
The current situation index rose to 77.5 (69 in the previous month), the highest level in almost two years. The expectation index rose to 69.4, the highest level in two years.
See table for detailed statistics.
Original title:US Consumer Sentiment Jumps to Near Two-Year High on Job Market(excerpt), Preliminary July Michigan Sentiment Rose to 72.6; Est. 65.5 (excerpt)
(adds stats details and updates)
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