U.S. consumers expect sluggish growth despite highest consumer sentiment level in six years
Consumer sentiment in the U.S. rose to its highest number in six years this July as American view on current economic climate generally improved, showed a survey released Friday. However, the same survey reflected that consumers expect a slower rate of growth for the remaining months of 2013.
U.S. consumer sentiment climbed from 84.1 in June to 85.1 in July, according to Thomson Reuters and the University of Michigan's final overall index reading. The new reading exceeded the expected 84 for this month and was the highest consumer sentiment level since July 2007.
"This high level of confidence points toward a continued expansion of consumer spending in the year ahead," remarked survey director Richard Curtin in an official statement.
Despite the improvement, a number of consumers still judged the future prospects of the economy unfavorably and predicted a sluggish growth, with higher income earners being less optimistic than lower income consumers.
The survey's gauge of current economic status also showed the highest reading in six years, rising from 93.8 to 98.6. However, the barometer of consumer economic expectations showed a less impressive reading, dropping from 77.8 to 76.5.
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