According to the latest data released, the consumer sentiment in the US has touched its highest level since July 2007 inciting that the economy is on the path of a stable recovery.

The Reuter's/University of Michigan consumer sentiment index rose 85.1 in July compared to 83.9 in June. The rating of 85.1 is highest for the month since July of 2007 indicating that the US consumers will increase spending during the coming months and boost economic growth in the US economy this year.

Increasing housing prices and a stable recovery in the jobs market has increased household wealth and income in the world's largest economy. The survey showed that the number of people expecting their inflation-adjusted incomes to rise in coming year is higher than any time since 2007. Consumer confidence is a key component for the economy as it accounts for 70 per cent of growth.

The University of Michigan poll included 500 people throughout the month and issues two readings. Economists polled by MarketWatch were expecting 84.0 reading after an initial 83.9 reading and an 84.1 reading for June. The sentiment returning to pre-recession levels is a major boost for the prospects for growth in the coming months.

Source: Top News