Consumers remain cautiously optimistic about economic growth in the short-term
After declining in April and May, U.S. consumer confidence redounded in June. The Conference Board's Consumer Confidence Index now sits at 98.0, up from the 92.4 seen last month.
The Index began 2016 with a January reading of 97.8—a level it has now surpassed for the first time since then.
The Conference Board reports that consumers' appraisal of current conditions improved in June. Those stating that business conditions are "good" increased slightly from 26.1 percent to 26.9 percent, while those saying business conditions are "bad" decreased from 21.4 percent to 17.7 percent.
Consumers' assessment of the labor market was mixed. Those claiming that jobs are "plentiful" declined from 24.5 percent to 23.4 percent, however those claiming that jobs are "hard to get" also decreased from 24.5 percent to 23.3 percent.
Consumers' optimism regarding the short-term outlook improved in June. Those expecting business conditions to improve over the next six months increased from 15.0 percent to 16.8 percent, while those expecting business conditions to worsen decreased slightly, from 11.7 percent to 11.4 percent.
Consumers' outlook for the labor market was also more favorable. The percentage anticipating more jobs in the months ahead increased from 12.5 percent to 14.2 percent, while those anticipating fewer jobs decreased marginally from 18.2 percent to 17.9 percent. The proportion of consumers expecting their incomes to increase improved from 16.5 percent to 18.2 percent, while the proportion expecting a reduction edged down from 12.6 percent to 11.5 percent.
"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 monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a global provider of information and analytics around what consumers buy and watch.
Source: The Conference Board