In July, the measurement reached its highest level in almost two years, boosted by the moderation of inflation and the strength of the labor market.
United States: consumer confidence reaches two-year highs
In July, consumer confidence Americans reached its highest level in almost two yearsdriven by the moderation of inflation and the strength labor market, according to a survey published on Friday.
The preliminary reading of the general index of consumer confidence from the University of Michigan stood at 72.6 this month, marking the highest reading since September 2021, compared to 64.4 in June. The economists surveyed by Reuters they had forecast a level of 65.5.
According to Joanne Hsudirector of consumer surveys, “trust increased across all demographics, except among lower income consumers“. Hsu said in a statement that “the notable increase in confidence is mainly attributed to the continued slowdown in inflationalong with stability in the labor markets.
One-year inflation expectations rose this month to 3.4%, compared with 3.3% of June. On the other hand, the five-year inflation outlook rose to 3.1% from 3% the previous month, remaining within range.the narrow range of 2.9% to 3.1% during 23 of the last 24 months.
Signs of economic stability
US consumer confidence data sAdded to June related to import prices in the US, which experienced a significant decline due to declines in various sectors, which more than offset the increase in fuel costs.
This phenomenon is a clear indication that inflationary pressures on the economy are declining.
According to the Labor Department report released on Friday, import prices fell 0.2% last month. It should be noted that the data for May were revised, revealing a decline of 0.4% instead of the previously announced 0.6%.
Source: Ambito
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