August 14, 2014 by Lisa Brammer
Consumer confidence in the United States continues to improve, month after month, to an almost seven-year high.
The Conference Board, a not-for-profit global independent business membership and research association, recently conducted their monthly Consumer Confidence Survey with the help of Nielsen, a global information and measurement company that provides market research, insights and data about what people watch, listen to and buy (think TV Nielsen ratings).
According to their report, the Consumer Confidence Index—which measures how optimistic or pessimistic consumers are about the state of the economy —increased by 4.5 points, from 86.4 in June to 90.9 in July. The Present Situation Index rose from 86.3 in June to 88.3 in July and the Expectations Index improved by 6.3 points, from 86.4 to 92.7.
“Consumer confidence increased for the third consecutive month and is now at its highest level since October 2007. Strong job growth helped boost consumers’ assessment of current conditions, while brighter short-term outlooks for the economy and jobs, and to a lesser extent personal income, drove the gain in expectations,” said Lynn Franco, director of economic indicators at the Conference Board.
The report also showed a more favorable appraisal of the job market along with an increase in the amount of consumers who were expecting business conditions to improve over the next six-months.
“Recent improvements in consumer confidence, in particular expectations, suggest the recent strengthening in growth is likely to continue into the second half of this year,” Franco added.
The consumer confidence index was started in 1967 and is benchmarked to 1985=100. This year was chosen because it was neither a year of highs or lows.
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