(Washington) U.S. consumer confidence rose in July for the second straight month on the back of slowing inflation and a still strong labor market, the University’s final estimate shows. of Michigan released Friday.
The index measuring this confidence increased by 11% compared to June, and by 39% compared to July 2022, to stand at 71.6 points. This is a little less, however, than anticipated during the preliminary estimate published in the middle of the month, which had climbed to 72.6 points.
It is also less than expected by analysts, who also expected 72.6 points, according to the consensus of Briefing.com.
“The sharp rise in sentiment [of confidence] is largely attributable to the continued slowdown in inflation coupled with the stability of the labor market,” said Joanna Hsu, director of the survey, quoted in the press release.
“However, low-income consumer confidence has plummeted. This group anticipates worsening inflation and their income outlook over the coming year, highlighting the heterogeneity of opinion among the population,” she added.
In detail, the index measuring the perception of current conditions jumped 11%, to 76.6 points, a rise substantially identical to that of the index measuring expectations for the coming months, which climbed 11.1%. , at 68.3 points.
Inflation slowed sharply in June in the United States, to 3.0% year on year, according to the CPI and PCE indices. However, this remains higher than the 2% targeted by the American central bank (Fed), which, in order to bring it down, causes a voluntary slowdown in economic activity by raising its rates.
Slowing inflation also requires, she said, lower wage increases than those of the past two years, which had been driven by a labor shortage.
Unemployment, however, still remains very low, at 3.6% in June.
