Going into July, economists had forecasted the Consumer Confidence Index to be around a 62. The Conference board released their consumer confidence index today, with an increase from 62.7 in June to a 65.9 in July.
Although the increase is good, a ‘healthy’ economy would score somewhere in the 90’s range and above. John Lonski of Moody’s Capital, believes consumers have an improved view of job prospects, lower energy prices, and stable stock prices but he also believes the CC Index will remain “choppy” until there is a resolution in Europe. The CC Index is based on a poll that was conducted from July 1-19 and includes about 500 people nationwide.
The economy is growing slowly, consumer spending is down but there is indication that people are starting to spend more. Housing prices have made a modest recovery; the national average rose 2.2% from April to May, only the second increase after 7 months of flat readings. Gas prices have come down to a national average of $3.49. The most telling indicator: more people say they plan to buy a car within the next 6 months.