Consumer Confidence Reaches Five-Year High in June
NEW YORK-The consumer confidence index, as compiled by The Conference Board, reached 81.4 percent in June, up 7.1 points from May and its highest level since January 2008.
Along with noting that the index is at its highest level in more than five years, Lynn Franco, The Conference Board's director of economic indicators, added that the index rose for the third straight month. "Consumers are considerably more positive about current business and labor-market conditions than they were at the beginning of the year," Franco said. This attitude was reflected in the fact that the present situation index, one of the main index's two components, rose 4.4 points to 69.2 in June.
The more upbeat consumer assessment of current conditions was also evident in their views on current business and the jobs picture. Fewer consumers rated current conditions as "bad," and more consumers said jobs are "plentiful" at this time.
The expectations index gained 8.9 points to 89.5. "Expectations have also improved considerably over the past several months," Franco said, "suggesting that the pace of growth is unlikely to slow in the short term, and may even moderately pick up."
Consumers' assessment of the down-the-road outlook also bore this out. The percentage of consumers who believe that business conditions will improve in the next few months rose, while more consumers also said the jobs outlook will improve in the future.