Consumer confidence in the United States hit a 17-month high.

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source: www.reuters.com

Some reports highlight that the US economy recorded its highest growth rate since 1983 in the second quarter.

US consumer confidence rose in July to its highest level in 17 months, with an increase in household spending plans, despite concerns about rising inflation, suggesting that the economy remained strong. Growth rate at the beginning of the third quarter.

Other data bolstered the outlook for the economy released Tuesday, which showed a substantial rise in new orders for manufactured capital goods in June, despite supply constraints hampering production at some factories.

These reports could ease concerns about a slowdown in growth in the second half of the year, as large-scale fiscal stimulus slows down. Instead, the economy is expected to grow at its fastest pace since 1983 in the second quarter.

Priscilla Thiagamoorthy, an economist at BMO Capital Markets in Toronto, said the growing sentiment suggests that consumer spending should support strong growth in the second half of this year.

The Conference Board said its consumer sentiment index rose from 128.9 in June to 129.1 this month, the highest level since February 2020. Economists polled by Reuters had predicted the index would fall to 123.9.

Consumer inflation expectations for the next 12 months fell to 6.6 percent from 6.7 percent last month.

Consumer confidence advanced even though the Delta variant of the coronavirus led to an increase in new infections, mainly among the unvaccinated.

"The Delta variant poses some downside risk, although we do not expect it to derail confidence completely, as its spread is uneven and is largely concentrated in areas with low vaccination rates," said Pooja Sriram, an economist at Barclays in New York.

According to the survey, more households intended to buy long-lasting manufactured goods, such as motor vehicles and appliances such as fridges and televisions, which should help prop up consumer and manufacturing spending.

Consumers were also willing to buy homes. As a result, households have at least $ 2.5 trillion in savings accumulated during the pandemic.

In another report, the Commerce Department said Tuesday that non-defense capital goods orders, excluding aircraft, rose 0.5% last month.

According to a Reuters poll, GDP probably grew at an annualized rate of 8.5% last quarter, an acceleration compared to 6.4% in the January-March period. The expansion forecast for the second quarter would be the largest since 1983 and could mark a peak in the current cycle.

Durable goods orders, products from toasters to airplanes intended to last three years or more, advanced 0.8% in June, after rising 3.2% in May.

A third report showed that the S & P / Case Shiller composite index of home prices in 20 metropolitan areas accelerated 17.0% year-on-year in May, the most significant rise since August 2004.