University of Michigan Consumer Confidence Survey Surges Higher

Consumer confidence rose to 92.4 (consensus 86) in July, from a ten month low of 85.3 in June. This was the largest monthly increase since last fall, and has brought the index back above its 12 month average of 88.6. Lower gasoline prices, low unemployment, combined with rising wages and stock values are being cited as reasons for the improvement.

Both current and future expectations rose, with expectations showing a larger gain. Inflation expectations fell for the next year to 3.3% from 3.4% last month, but over the next five years inflation is now expected to rise 3.1% versus 2.9% in June.