Consumers feel much better about the economy and labor markets in June, a positive trend for future spending according to data released this week.
The Wall Street Journal reported that the Conference Board, a private research group, said its index of consumer confidence jumped to 101.4 in June from a revised 94.6 in May, first reported as 95.4. The index equals the multiyear high of 101.4 in March.
Economists surveyed by WSJ had forecast the latest index to increase, but only to 97.5. The University of Michigan reported last Friday that its consumer sentiment index increased to a five-month high in June.
The present situation index, a gauge of consumers’ assessment of current economic conditions, increased to 111.6 from a revised 107.1 in May, first put at 108.1. Consumer expectations for economic activity over the next six months advanced to 94.6 from a revised 86.2, originally reported as 86.9.
“Over the past two months, consumers have grown more confident about the current state of business and employment conditions,” said Lynn Franco, director of economic indicators at the board. “Overall, consumers are in considerably better spirits and their renewed optimism could lead to a greater willingness to spend in the near-term.”
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