Survey: Consumer confidence increases, still 'historically low'

Consumers in the United States became more confident in July, according to a private-sector report released Tuesday, an outcome that surprised analysts.

The Conference Board’s Consumer Confidence Index, which had fallen every month since February, bumped up to 65.9 in July, its highest reading in three months. 

The board’s index stood at 62.7 for June; according to Bloomberg and Reuters, economists expected a dip to 61.5 this month. 

But even with the unexpected boost, the Conference Board cautioned that its index remained at “historically low levels.” 

The economy, and voters’ perception of current conditions, is expected to play a central role in November’s election, as President Obama seeks a second term with unemployment currently north of 8 percent.

“Given the current economic environment — in particular the weak labor market — consumer confidence is not likely to gain any significant momentum in the coming months,” Lynn Franco, the board’s director of economic indicators, said in a statement.

As Franco also noted, the index found that consumers’ expectations improved, but that their sense of current conditions took a slight dip. 

The Conference Board numbers also rose while other confidence indicators have declined. Gallup’s economic confidence index fell last week, the polling company announced Tuesday, dropping to levels last seen in January.

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