The expectations index improved significantly as consumers became more hopeful about jobs and business conditions. | Economy
Consumer sentiment rose more than expected in July, as Americans expressed increased optimism about future economic conditions and labor market prospects, according to new data from the Conference Board.
The Consumer Confidence Index climbed to 97.2 this month, up from a revised 95.2 in June. Economists had forecast a reading of 95.8. The rise was driven by improving expectations for business conditions, employment, and income, particularly among adults over the age of thirty-five and across nearly all income groups.
The Expectations Index rose to 74.4 in July from 69.9 in the previous month. While still below the level of 80 that the Conference Board associates with recession risk, July marked the highest reading since January and the second consecutive monthly increase. According to the report, “all three components of the Expectation Index improved,” with fewer consumers expecting business and labor conditions to worsen and more anticipating income gains.
