Consumer Sentiment in U.S. Increases to Six-Year High July

Source: Bloomberg

By Victoria Stilwell - Jul 26, 2013

Consumer confidence unexpectedly increased in July to the highest level in six years as Americans’ views of their finances improved.

The Thomson Reuters/University of Michigan final index of consumer sentiment advanced to 85.1 in July from 84.1 at the end of June. Economists in a Bloomberg survey called for 84, according to the median projection after a preliminary reading of 83.9.

An increase in personal wealth tied to higher property values and stock portfolios is keeping confidence elevated and consumers spending. Stronger finances, along with job gains that have picked up from the second half of 2012, are also helping blunt the effects of higher payroll taxes.

“With the employment story improving, I think we should see continuing improvement in consumer confidence and that should boil through the economy,” Jerry Webman, chief economist at Oppenheimer Funds Inc. in New York, said before the report.

Read more: http://www.bloomberg.com/news/2013-07-26/michigan-consumer-sentiment-index-increased-to-85-1-in-july.html