The Conference Board Consumer Confidence Index rose in July as consumers were still relatively positive on the labor market. The index increased to a reading of 100.3 in July (1985=200) from a downwardly revised reading of 97.8 in June.

“Confidence increased in July, but not enough to break free of the narrow range that has prevailed over the past two years,” Dana Peterson, chief economist at The Conference Board, said in a press release. “Even though consumers remain relatively positive about the labor market, they still appear to be concerned about elevated prices and interest rates, and uncertainty about the future; things that may not improve until next year.”

Consumers were somewhat less pessimistic about the future in July when compared to June, Peterson said.

“Expectations for future income improved slightly, but consumers remained generally negative about business and employment conditions ahead,” she said. “Meanwhile, consumers were a bit less positive about current labor and business conditions. Potentially, smaller monthly job additions are weighing on consumers’ assessment of current job availability: While still quite strong, consumers’ assessment of the current labor market situation declined to its lowest level since March 2021.”

Confidence improved among consumers under age 35 and rose among those 55 and older. Only the 35 to 54 age group saw a decline.

The proportion of consumers predicting a forthcoming recession in July ticked up, but it remains well below the 2023 peak.