U.S. consumer confidence in July rose to a five-month high, with the willingness to purchase durable goods reaching its highest level in nearly ten months. The commercialization prospects of AI have raised concerns about employment.

Consumer confidence in the U.S. improved for the second consecutive month in July, reaching the highest level in five months. This reflects a reduction in pessimism among American households about the economy, as expectations for economic prospects improve and gasoline prices remain at recent lows. Data released by the University of Michigan on Friday showed that the final consumer confidence index for July rose to 55.2, up from a preliminary figure of 54.4 and higher than the June level. The survey was conducted between June 23 and July 27. During this period, U.S. gasoline prices briefly fell to their lowest levels since March; although tensions in the Middle East later contributed to a rebound in oil prices, overall prices are still below the highs seen during the previous war period. Joanne Hsu, director of the consumer survey at the University of Michigan, indicated that consumers remain primarily focused on issues directly related to household finances, such as purchasing power, while the impacts of political and geopolitical conflicts are less prominent. She noted that despite the recent improvement in consumer confidence, the index is still 11% lower than the same time last year, indicating that households overall remain relatively cautious about the U.S. economy. Meanwhile, U.S. consumer spending continues to show resilience. Data released earlier this week indicated that inflation-adjusted real consumer spending in June increased by 0.4% month-on-month, marking one of the largest increases in nearly a year, reflecting that despite high prices, consumer demand in America remains robust. Sub-sector data shows that consumer willingness to buy durable goods (such as cars and appliances) rose to the highest level since October of last year. Additionally, two sub-indices reflecting the current economic situation and future economic expectations both improved from the previous month. Furthermore, confidence among respondents across different income levels, ages, education backgrounds, and political affiliations also increased, with the long-term economic outlook index reaching its highest level in a year. Regarding inflation expectations, consumers anticipate an inflation rate of 4.2% over the next year, down from the previous month; long-term inflation expectations for the next five to ten years remain stable at 3.3%, unchanged from June. Notably, artificial intelligence (AI) has become an increasingly important topic in consumer surveys. Joanne Hsu stated that, overall, respondents have a predominantly negative view of AI. While some consumers believe AI may help enhance productivity, many are concerned about its potential negative impact on the job market.