WASHINGTON, July 25 — Consumer confidence in the United States beat expectations in July to reach its highest level in two years, with increased optimism among all ages, according to survey data released today.

"Despite rising interest rates, consumers are more upbeat, likely reflecting lower inflation and a tight labour market,” the Conference Board said in a statement.

The Conference Board’s consumer confidence index rose to 117.0 in July, up from 110.1 last month. This was above the median expectation of economists surveyed by MarketWatch.

"Consumer confidence rose in July 2023 to its highest level since July 2021, reflecting pops in both current conditions and expectations,” the Conference Board’s chief economist, Dana Peterson, said in a statement.

"Headline confidence appears to have broken out of the sideways trend that prevailed for much of the last year,” she said, noting that greater confidence was seen among both consumers earning incomes less than US$50,000 (RM228,050) and those making more than US$100,000.

High Frequency Economics’ chief US economist Rubeela Farooqi said the rise in consumer confidence was down to "an improvement in both current conditions and expectations.”

"Job growth remains strong, inflation is gradually receding, and real disposable incomes are now rising,” she said.

"While consumer sentiment is below pre-pandemic levels, the improvement in recent months is a positive signal for households and spending,” she added. — AFP