A measure of consumer confidence rebounded on more upbeat expectations for business and labor conditions. Still, concerns over inflation and interest rates persist.

The Conference Board reported its Consumer Confidence Index rose 2.5 points between June and July to 100.3. A component of the index based on assessments of current conditions retreated. But a component based on short-term expectations advanced.

“Confidence increased in July, but not enough to break free of the range that has prevailed over the past two years,” said Dana Peterson, chief economist at the Conference Board. “Even though consumers remain relatively positive about the labor market, they still appear to be concerned about elevated prices and interest rates and uncertainty about the future. Things that may not improve until next year.”

The New York-based think tank bases the index on the results of monthly household surveys. Economists monitor the index because consumer spending accounts for more than two-thirds of economic activity.

For July, less optimistic assessments of current conditions pulled down the present situation component of the index 1.7 points to 133.6.

The proportion of consumers responding to the survey upon which the July index was based who called business conditions good slipped a tenth of a point to 18.8 percent. The share of those who called conditions bad edged up two-tenths of a point to 18.3 percent.

The proportion of consumers who said jobs were plentiful fell 1.4 points to 34.1 percent. The share of those who said jobs were hard to get rose three-tenths of a point to 16 percent.

Consumers were more confident in their short-term outlook, pushing up the expectations component of the index 5.4 points between June and July to 78.2. The reading has remained below 80 for six straight months, a level that typically signals a recession.

Peterson said the proportion of consumers predicting a recession ticked up in July, but remained well below the 2023 peak. Consumers indicated they were most concerned about higher prices, labor, the political situation and upcoming election.

The share of consumers who expected business conditions to improve over the next six months rose 1.6 points to 14.8 percent. The proportion of those who expected conditions to worsen fell nine-tenths of a point to 16.7 percent.

The share of consumers who expected more jobs to become available in coming months rose 1.4 points to 14.5 percent. The proportion of those anticipating fewer jobs declined 1.6 points to 16.7 percent.

While 15.6 percent of consumers expected their incomes to increase — down sixth-tenths of a point from June — the share of those who expected decrease incomes fell seven-tenths of a point to 11.6 percent.