How has consumer confidence trended over the past year in the US?

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US Consumer Confidence Trended Upward in July, Breaking from a Previous Sideways Pattern

US consumer confidence reached its highest point in two years in July, indicating a significant upward shift after a prolonged period of stagnation. The Conference Board's consumer confidence index surged to 117.0 in July, a notable increase from 110.1 in the preceding month. This latest figure represents a departure from the sideways trend that had characterized consumer sentiment for much of the past year.
Confidence Reached a Two-Year High in July

The consumer confidence index for July recorded a reading of 117.0, surpassing economists' expectations and marking the highest level observed since July 2021. This rise signifies a more optimistic outlook among consumers across various age demographics. The improvement was attributed to increased optimism in both current economic conditions and future expectations, according to The Conference Board.
Index Broke Out of a Year-Long Sideways Trend

For a significant portion of the past year, consumer confidence had been following a relatively flat, sideways trajectory. The July data indicates a clear breakout from this pattern, suggesting a renewed positive sentiment. This shift is seen as a positive signal for households, especially in the context of sustained job growth and gradually receding inflation.
Factors Contributing to the Upward Trend

The uplift in consumer confidence is associated with several favourable economic indicators. These include a robust labour market, which continues to see strong job growth, and a gradual decrease in inflation rates. Furthermore, real disposable incomes are now experiencing an upward trend, contributing to consumers' more positive assessment of their financial situations.

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How has consumer confidence trended over the past year in the US?

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