July 29 (Bloomberg) — Confidence among U.S. consumers soared in July to the highest level in almost seven years as Americans grew more upbeat about the labor market and the outlook for the economy.
The Conference Board's index rose to 90.9, the highest since October 2007, from a revised 86.4 in June, according to the New York-based private research group said today. The gauge exceeded the most optimistic forecast in a Bloomberg survey in which the median called for an 85.4 reading.
More employment opportunities, fewer firings and resilient equity markets are buoying spirits against a backdrop of geopolitical tension in Ukraine and the Middle East. Faster wage growth would help to further spur sentiment and provide the wherewithal for bigger gains in consumer spending.
"Employment conditions improved, gas prices are lower, equity markets remain robust, and that's pretty much it," said Neil Dutta, head of U.S. economics at Renaissance Macro Research LLC in New York. "The fact that confidence is rising at a fairly steady rate implies that employment growth is going to continue at a fairly healthy rate."
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