WASHINGTON — U.S. consumers are more confident about the economy than they have been in nearly seven years.
The Conference Board’s confidence index rose to 90.9 in July from an upwardly revised 86.4 in June. The July reading is the highest since October 2007, two months before the Great Recession officially began.
It was the third straight increase in the index. Economists said that strong job growth has helped boost consumers’ assessment of current conditions and also improved their outlook on jobs and the economy.
Conference Board economist Lynn Franco says that the improvements in consumers’ confidence and expectations about the future indicate that the recent strengthening in overall economic growth should continue in the second half of the year.
Confidence has been rising since bottoming in February 2009 at 25.3. The index is now well above last years's average of 72.3 and with July's gain has now returned a level above 90, where it often hovered before the recession.
Consumer's attitudes are closely watched because of their spending accounts for about 70 percent of U.S. economic activity.
For July, consumer views of the labor market improved with those saing that jobs were plentiful increasing to 15.9 percent from 14.6 percent.
Original Article By: Martin Crutsinger- The Associated Press