EmailThe Conference Board's Consumer Confidence Index increased from 57.6 in June to 59.5 in July. The Briefing.com consensus expected the index to fall to 56.0.
The modest gain was surprising considering the preliminary reading of the July University of Michigan Consumer Sentiment Index dropped from 71.5 in June to 63.8. That was the largest one-month decline since July 2010 and left the index at its worst level since March 2009.
Typically, consumer confidence follows changes in equity prices, employment, media reports, and oil/gasoline prices. It seems the consumers surveyed by the Conference Board did not view the recent weakness in employment and the possible detrimental effects of a failure to pass a debt ceiling increase as negatively as the consumers surveyed by the University of Michigan. Instead, the respondents in the Confidence Index seemed to focus more on the positive effects of easing gasoline prices and stronger equities this month.
Even though confidence improved, the index is still well below the recent February peak of 72.0.
