Consumer Confidence Rebounds in June
Consumer confidence, which had stumbled in May, rebounded in June, The Conference Board, New York, reported yesterday.
The Consumer Confidence Index increased moderately in June to 118.9, up from 117.6 in May. The Present Situation Index increased from 140.6 to 146.3, while the Expectations Index declined from 102.3 last month to 100.6.
Consumers’ appraisal of current conditions improved in June. Those saying business conditions are “good” increased from 29.8 percent to 30.8 percent, while those saying business conditions are “bad” declined from 13.9 percent to 12.7 percent. Consumers’ assessment of the labor market was also more positive. Those stating jobs are “plentiful” rose from 30.0 percent to 32.8 percent, while those claiming jobs are “hard to get” decreased slightly from 18.3 percent to 18.0 percent.
Consumers, however, were less optimistic about the short-term outlook in June. The percentage of consumers expecting business conditions to improve over the next six months decreased from 21.5 percent to 20.4 percent, however, those expecting business conditions to worsen declined marginally from 10.3 percent to 9.9 percent.
Consumers’ outlook for the labor market remained mixed. The proportion expecting more jobs in the months ahead increased from 18.6 percent to 19.3 percent, but those anticipating fewer jobs increased from 12.1 percent to 14.6 percent. The percentage of consumers expecting an improvement in their income rose from 19.1 percent to 22.2 percent, but the proportion expecting a decline increased slightly from 8.7 percent to 9.2 percent.
“Overall, consumers anticipate the economy will continue expanding in the months ahead, but they do not foresee the pace of growth accelerating.” said Lynn Franco, Director of Economic Indicators with The Conference Board. “Expectations for the short-term have eased somewhat, but are still upbeat.”
Mark Vitner, senior economist with Wells Fargo Securities, Charlotte, N.C., noted expectations for future conditions eased a bit, likely reflecting uncertainty about public policy.
“Consumer confidence has held onto most of its post-election bounce, despite ongoing concerns about how much of President Trump’s ambitious economic plan will be enacted,” Vitner said.
