A report released by the Conference Board on Tuesday showed a significant improvement in U.S. consumer confidence in the month of June.
The Conference Board said its consumer confidence index jumped to 109.7 in June from a revised 102.5 in May. Economists had expected the index to rise to 103.7 from the 102.3 originally reported for the previous month.
“Consumer confidence improved in June to its highest level since January 2022, reflecting improved current conditions and a pop in expectations,” said Dana Peterson, Chief Economist at The Conference Board.
She added, “Greater confidence was most evident among consumers under age 35, and consumers earning incomes over $35,000. Nonetheless, the expectations gauge continued to signal consumers anticipating a recession at some point over the next 6 to 12 months.”
The bigger than expected increase by the headline index came as the present situation index surged to 155.3 in June from 148.9 in May.
The expectations index also shot up to 79.3 in June from 71.5 in May, although a reading below 80 is associated with a recession within the next year.
“Although the Expectations Index remained a hair below the threshold signaling recession ahead, a new measure found considerably fewer consumers now expect a recession in the next 12 months compared to May,” said Peterson.
On Friday, the University of Michigan is scheduled to release its revised report on consumer sentiment in the month of June. The consumer sentiment index for June is expected to be unrevised at 63.9, which was up from 59.2 in May.
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