American consumers are feeling the best they have about the economy since the start of the recent recession, according to a survey from the University of Michigan and Thomas Reuters.
At its highest level since 2007, the consumer sentiment index rose to 85.1 in July from 84.1 the previous month.
"The July survey suggests a growing resilience among consumers that will enable them to more easily withstand the cross-current inevitable in a slow-growth economy," said Richard Curtin, the chief economist for the consumer survey.
The data is "a robust sign that consumers expect the expansion to continue and act to speed up their buying plans."
According to the survey, the rising values of homes and stock portfolios have boosted consumer confidence. Individuals said they were move favorable toward making purchases, including automobiles and homes, even though the percentage of consumers who thought interest rates would increase was up.
Data showed about 68% of consumers expect interest rates to rise in the next year. July’s number is up from the 55% in June.
Anticipation of higher interest rates lowered consumer’s longer-term view of the economy, but accelerated buying plans, the survey said.