United States: Consumer confidence rebounds and jumps to eight-month high in June
June 28, 2016
The Conference Board’s consumer confidence indicator jumped from 92.4 in May to 98.0 in June and beat the 93.5 the markets had expected. June’s result took the index to its highest level since October 2015, but the cutoff date was 16 June, a week before the British referendum that has roiled global financial markets. Due to the increase in June, the Conference Board’s consumer confidence index returned near the middle of its range over last year.
June’s rise reflected that both expectations and current conditions components of the index improved. According to the Conference Board, “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. Expectations regarding business and labor market conditions, as well as personal income prospects, improved moderately. Overall, consumers remain cautiously optimistic about economic growth in the short-term.”
Author: Ricardo Aceves, Senior Economist