The numbers: A survey of U.S. consumer confidence climbed to a two-year high of 117.0 in July, a sign that Americans are growing more optimistic about the economy.
The closely followed index rose 6.9 points from a revised WAS 110.1 in June, the Conference Board said Tuesday.
Consumer confidence tends to signal whether the economy is getting better or worse. The index has rebounded from a weak spell early in the year, though it still lags well below pre-pandemic levels.
Economists polled by The Wall Street Journal had forecast the index to register 112.
Big picture: Americans aren’t exactly thrilled about the economy. They are paying more for everything because of high inflation in the past few years. And rising interest rates have made it more costly to borrow money to buy a house, a car or other big-ticket items.
Yet the U.S. jobs market is as good as it’s been in years, with Americans saying jobs are easy to find. Unemployment is near the lowest level since the 1960s and wages have risen more rapidly to help offset some of the inflation pain.
As a result, households are spending enough money to stave off a widely predicted recession.
Market reaction: The Dow Jones Industrial Average
DJIA,
and the S&P 500
SPX,
were little changed in Tuesday trades.
This story originally appeared on Marketwatch
