NEW YORK - The consumer confidence index rose to 59.5 in July from a downwardly revised 57.6 last month, The Conference Board reported Tuesday.
Economists polled by Thomson Reuters predicted the index would be 56.0.
The June index was originally reported as 58.5.
The present situation index dipped to 35.7 from a downwardly revised 36.6, originally reported as 37.6, while the expectations index increased to 75.4 from a downwardly revised 71.6, originally reported as 72.4.
“Consumer confidence posted a modest gain in July, the result of an improvement in consumers’ short-term outlook,” said Lynn Franco, director of The Conference Board's Consumer Research Center. “Consumers’ appraisal of current business and employment conditions, however, was less favorable as concerns about the labor market continue to weigh on consumers’ attitudes. Overall, consumers remain apprehensive about the future, but some of the concen expressed last month has abated.”
Business conditions were called “good” by 13.4% of respondents in July, off from 13.7% in June. Those saying conditions are “bad” climbed to 39.0% from 38.4%.
The percentage of consumers expecting a pickup in business conditions in the next half year rose to 17.7% from 16.5%, while 15.2% said they expect conditions to worsen, up from 14.9% the prior month.
On the jobs front, those who believe jobs are “plentiful” held at 5.1% in July, while the number saying jobs are “hard to get” increased to 44.1% this survey from 43.2%. The respondents who see fewer jobs becoming available in a half year, grew to 21.8% from 20.7%. Those expecting more jobs to become available climbed to 16.7% from 13.8%, The Conference Board reported.
Income expectations were mixed, with 15.7% of consumers anticipating an increase in their income in the next six months, up from the prior month's 14.1%, while 16.8% expect their income to decrease, up from 16.6% in the prior month’s survey.
The number of consumers who expected to buy a home in the next six months climbed to 4.9% from 4.3%, while the number of respondents planning to buy a car fell to 11.2% from 11.5%. Fewer consumers than last month said they plan to buy a major appliance in the next six months (46.9% vs. 49.3%).
Fewer respondents than last month (42.0% vs. 43.9%) expect to take a vacation in the next six months, but more said they would stay in the U.S. rather than leave the country. Cars rather than airplanes were the preferred mode of travel, by a 22.7%-20.3% margin.
The consumer confidence survey is based on a probability design random sample by the Nielsen Company.
