Consumer confidence gets a boost in June

Consumer confidence got a nice boost in June, though we might still be waiting for the other shoe to drop given that the cutoff date for the results was June 16 -- before the Brexit vote.

According to the Conference Board, consumer confidence now stands at 98.0, up from 92.4 in May, which had decreased since April.

“Consumer confidence rebounded in June, after declining in May,” said Lynn Franco, director of economic indicators at 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.”

The Present Situation Index also increased from 113.2 to 118.3, with those stating business conditions are “good” increasing from 26.1% to 26.9%, while those saying business conditions are “bad” decreasing from 21.4% to 17.7%. Consumers’ assessment of the labor market was mixed. Those claiming jobs are “plentiful” declined from 24.5% to 23.4%, even though those claiming jobs are “hard to get” also decreased from 24.5% to 23.3%.

Meanwhile, the Expectations Index rose from 78.5 to 84.5. Those expecting business conditions to improve over the next six months increased from 15.0% to 16.8%, while those expecting business conditions to worsen decreased by 0.3%.

Additionally, those anticipating more jobs in the months ahead increased from 12.5% to 14.2%, while those anticipating fewer jobs decreased marginally from 18.2% to 17.9%. The proportion of consumers expecting their incomes to increase improved from 16.5% to 18.2%, while the proportion expecting a reduction edged down from 12.6% to 11.5%.