Consumer confidence is now at its highest level since October 2007, boosted by the perception of job growth.
That’s according to The Conference Board, which measures consumer sentiment every month. According to the organization, the Consumer Confidence Index rose for the third straight month and now stands at 90.9, up from 86.4 in June.
Both components of the Index also saw gains. The Present Situation Index increased to 88.3 from 86.3. The Expectations Index, which measures sentiment six months out, rose to 92.7 from 86.4.
Lynn Franco, director of economic indicators at The Conference Board, said, “Strong job growth helped boost consumers’ assessment of current conditions, while bright short-term outlooks for the economy and jobs, and to a lesser extent, personal income, drove the gain in expectations.”
Franco said recent improvements in confidence suggest that the “recent strengthening in growth is likely to continue into the second half of this year.”
Consumers who said business conditions are “good” slipped slightly to 22.7 percent from 23.4 percent, but those who said jobs are “plentiful” rose to 15.9 percent from 14.6 percent. What’s important regarding the survey of respondents’ perception of the present is that they didn’t think conditions were getting worse.
Even more important, their responses showed optimism six months out. Those who said they expect business conditions to improve rose to 20.2 percent from 18.4 percent, while those who anticipated more jobs in the months ahead grew to 19.1 percent from 16.3 percent.
In addition, more consumers — 17.3 percent compared with 16.7 percent last month — were also expecting their incomes to grow.