US consumer confidence rebounded strongly in July as Americans regained optimism in their economic prospects despite a continuing housing market slump, a survey showed Tuesday.
The Conference Board said its consumer confidence index rebounded sharply to a reading of 112.6 in July, up from a revised 105.3 in June.
The July reading was much stronger than most Wall Street analysts had forecast.
"The rebound in consumer confidence has catapulted the index to its highest reading in nearly six years," said Conference Board research director Lynn Franco.
The index was 114.0 in August of 2001.
"This rebound in confidence suggests economic activity may gather a little momentum in the coming months," Franco said.
The index had fallen in June amid consumer concern about a softening in business and employment opportunities, but consumer attitudes switched abruptly in July as Americans became more upbeat again.
Franco said a perceived improvement in business conditions and the job market had boosted consumers' spirits in recent weeks.
The two sub-indexes in the Conference Board survey increased.
The present situation index rose to 139.2 in July from 129.9 in June and the forward-looking expectations index surged to 94.8 from 88.8.
In the survey, those claiming jobs are "plentiful" improved to 30.5 percent from 27.6 percent in June while respondents saying jobs are "hard to get" declined.
Consumers also turned less-pessimistic about the short-term economic outlook.
Those expecting business conditions to worsen in the next six months declined to 8.0 percent from 10.8 percent, but those expecting business conditions to improve dipped slightly.
The preliminary report was based on a survey of 5,000 US households through July 24. |
