After improving moderately last month, U.S. consumer confidence has continued its upward momentum.
The Conference Board Consumer Confidence Index now stands at 101.4, up from 94.6 in May. This is not far off the 7.5-year high of 103.8 seen in January of this year.
"Consumer confidence improved further in June, following a modest gain in May," said Lynn Franco, Director of Economic Indicators at The Conference Board. "Over the past two months, consumers have grown more confident about the current state of business and employment conditions. In addition, they are now more optimistic about the near-term future, although sentiment regarding income prospects is little changed."
The Conference Board says that consumers' assessment of current conditions improved again in June. Those saying business conditions are "good" increased from 24.7 percent to 26.4 percent, while those claiming business conditions are "bad" was virtually unchanged at 17.8 percent. Consumers were also more positive about the job market. Those stating jobs are "plentiful" increased from 20.6 percent to 21.4 percent, while those claiming jobs are "hard to get" declined from 27.2 percent to 25.7 percent.
Consumers' optimism about the short-term outlook also increased in June. The percentage of consumers expecting business conditions to improve over the next six months rose from 16.0 percent to 18.5 percent, while those expecting business conditions to worsen decreased from 11.3 percent to 9.8 percent.
"Overall, consumers are in considerably better spirits and their renewed optimism could lead to a greater willingness to spend in the near-term," Franco added.
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