Consumer confidence remains elevated in July

The Conference Board Consumer Confidence Index® (CCI) was relatively unchanged in July, following gains in each of the prior five months. The Index now stands at 129.3 (1985=100), up from 128.9 in June and its trough of 85.7 in April 2020. While no major improvement in the CCI was seen last month, this elevated reading points to sustained strength in consumer spending over the second half of 2021.

While the headline CCI was largely flat for the month it remains at its highest point since February 2020 (132.6). Consumers’ appraisal of present-day conditions held steady, suggesting economic growth in Q3 is off to a strong start. Furthermore, consumers’ optimism about the short-term outlook didn’t waver, and they continued to expect that business conditions, jobs, and personal financial prospects will improve. Short-term inflation expectations eased slightly but remained elevated. Spending intentions picked up in July, with a larger percentage of consumers saying they planned to purchase homes, automobiles, and major appliances in the coming months. Thus, consumer spending should continue to support robust economic growth in the second half of 2021.

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