The consumer confidence index, measured by the University of Michigan in the USA, was revised down to 71.6 in July, recording its highest level since October 2021.
The University of Michigan has announced the final data on the Consumer Confidence Index for July, prepared in line with the trends of American consumers.
Accordingly, Consumer Confidence increased by 7.2 points to 71.6 in July compared to the previous month. While the said data was revised downwards, the leading data for July was announced as 72.6. The consumer confidence index was recorded as 64.4 in June.
The current economic conditions index, which measures Americans’ assessment of current financial conditions, rose 7.6 points month-on-month to 76.6 in July. The consumer expectations index, which reflects the long-term projections of consumers, increased by 6.8 points to 68.3 in the same period.
The current economic conditions index reached its highest value since October 2021 and the consumer expectations index since December 2021.
Short-term inflation expectations increased
Joanne Hsu, Director of Consumer Surveys, whose views were included in the statement, stated that consumer confidence recorded its best level since October 2021, and noted that all components of the index improved significantly.
Emphasizing that the increase in consumer confidence can be attributed to the continued slowdown in inflation in general, as well as the stability in the labor market, Hsu said that he predicts the inflation and incomes of low-income consumers will worsen next year.
Hsu stated that consumers’ short-term inflation expectations rose from 3.3 percent to 3.4 percent in July, while long-term inflation expectations remained stable at 3 percent.