Lates News

Consumer confidence in the United States in July rose to the highest level in five months, but due to the rekindling of conflict in the Middle East pushing up gasoline prices, this improvement may only be temporary. The University of Michigan Consumer Survey reported on Friday that its consumer confidence index for this month rose to 54.4, the highest level since February, while the final value for June was 49.5, economists had previously forecasted a rise to 51.0. The survey was conducted from June 23 to July 13, with over 70% of interviews completed before the breakdown of the ceasefire agreement between the United States and Iran last week, an event that pushed oil prices to a one-month high. Following this, gasoline prices rose. "The increase in consumer confidence this month is widespread across all demographics, regardless of age, income, wealth, or political affiliation," said Joanne Xue, director of the consumer survey project. "However, due to persistently high prices, consumers are not optimistic about the economic outlook; the confidence index has dropped by 12% from a year ago. Therefore, if the recent downward trend in gasoline prices continues to reverse, the upward momentum in confidence may be difficult to sustain."