Continuing this week's trend of optimism in market fundamentals, consumer confidence pushed to a new post-recession high of 85.2 in June, up from a downwardly revised figure of 82.2 in May.
“Consumer confidence continues to advance, and the index is now at its highest level since January 2008 (87.3)," said Lynn Franco, director of economic indicators at The Conference Board. "June’s increase was driven primarily by improving current conditions, particularly consumers’ assessment of business conditions. Expectations regarding the short-term outlook for the economy and jobs were moderately more favorable, while income expectations were a bit mixed. Still, the momentum going forward remains quite positive.”
As Franco said, the Present Situation Index drove the results, increasing to 85.1 from 80.3. There was an uptick in those claiming business conditions are "good," and a corresponding downturn in those saying they were "bad." A moderate amount of consumers thought jobs were more "plentiful," and those claiming they were "hard to get" edged down 0.4%.
Meanwhile, the Expectations Index matched overall confidence at 85.2, up from 83.5 in May. Those expecting business conditions to improve over the next six months increased to 18.8% from 17.7%. However, those expecting them to worsen also increased (by 0.7%). Consumers were optimistic about the labor market outlook, with 1.1% more anticipating a greater amount of jobs in the near future. However, 15.9% expected their incomes to grow in June, compared with 18.0% in May.