Economy: Consumer Confidence Index (CCI) for July 2018

The Consumer Confidence Index® (CCI) for this month (July 2018) was released by The Conference Board® this morning:

Predicted: 127.0
Actual: 127.4

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Previous Month (revised): 127.1.

Change from Previous Month: +0.236% (+0.3 point)

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The "predicted" figure is what economists were expecting, while the "actual" is the true or real figure.

From Today's Report:

"...'Consumer confidence gained marginal ground in July, after a modest decline in June,' said Lynn Franco, Director of Economic Indicators at The Conference Board. 'Consumers’ assessment of present-day conditions improved, suggesting that economic growth is still strong. However, while expectations continue to reflect optimism in the short-term economic outlook, back-to-back declines suggest consumers do not foresee growth accelerating.'

Consumers’ assessment of current conditions improved further in July. Those stating business conditions are 'good' increased from 37.2 percent to 38.0 percent, while those saying business conditions are 'bad' declined from 11.5 percent to 10.1 percent. Consumers’ assessment of the labor market was also more favorable. Those claiming jobs are 'plentiful' increased from 40.4 percent to 43.1 percent, while those claiming jobs are 'hard to get' was virtually unchanged at 15.0 percent.

Consumers’ optimism about the short-term outlook waned again in July. The percentage of consumers anticipating business conditions will improve over the next six months increased from 20.7 percent to 23.1 percent, but those expecting business conditions will worsen also rose, from 9.3 percent to 10.8 percent.

Consumers’ outlook for the labor market was also mixed. The proportion expecting more jobs in the months ahead increased from 20.0 percent to 22.5 percent, but those anticipating fewer jobs also increased, from 13.1 percent to 15.7 percent. Regarding their short-term income prospects, the percentage of consumers expecting an improvement rose from 19.7 percent to 20.8 percent, but the proportion expecting a decrease also rose, from 7.9 percent to 9.2 percent..."

Every month, The Conference Board sends a questionnaire to 5,000 U.S. households. Survey participants are polled about their feelings regarding the U.S. economy, current and future, and about their own fiscal circumstances. On average, 3,500 participants complete and return the 5-question survey.

The baseline "100" score for the CCI is associated with 1985 survey data.

When consumers feel good about the economy, they tend to do more spending, and vice versa.

Based in New York City, The Conference Board is a private, not-for-profit organization with a mission to, "create and disseminate knowledge about management and the marketplace to help businesses strengthen their performance and better serve society."

The CCI is usually released on the last Tuesday of the month.