Consumer Confidence Increased in June to an Eight-Month Highby
Consumer confidence rose in June to an eight-month high as Americans became somewhat more optimistic about the economy, according to a report from the New York-based Conference Board on Tuesday.
- Confidence index climbed to 98 from a revised 92.4 in May (forecast was 93.5) from 92.4
- Consumer expectations gauge for the next six months rose to a five-month high of 84.5 from 78.5
- Measure of present conditions advanced to 118.3, the second-strongest reading since September 2007, from 113.2 in May
Respondents said they anticipated more job and income gains in the coming six months, which may help lift spending after a first-quarter slowdown. The cutoff date for the survey was June 16, a week before Britain’s decision to leave the EU caused stock prices to slump, so investors will have to wait for the July reading to get a better idea of the impact U.K. vote. If sustained, the pickup in confidence shows consumer spending will probably improve and spur the economy.
- “Consumers were less negative about current business and labor market conditions, but only moderately more positive, suggesting no deterioration in economic conditions, but no strengthening either,” Lynn Franco, director of economic indicators at the Conference Board, said in a statement. “Overall, consumers remain cautiously optimistic about economic growth in the short-term.”
- The share of Americans who said more jobs will be available in six months rose to an eight-month high of 14.2 percent from 12.5 percent
- Some 18.2 percent see their incomes increasing over the same period, up from 16.5 percent
- The share of respondents seeing an improvement in business conditions advanced to 16.8 percent, the strongest since October, from 15 percent a month earlier
- Buying plans deteriorated somewhat, with fewer Americans expecting to purchase autos, homes and appliances