Consumer Confidence Rebounds in June
Jun 27, 2017
The Conference Board’s Consumer Confidence Index unexpectedly rebounded in June on divergent shifts in the two key underlying metrics and within two key demographic groups. Consumers 35 years old and older who make at least $35k indicated greater confidence in the June survey. Those who are younger and earn less responded less confidently. As to the two key underlying metrics, the headline index rose to 118.9 in June (third best level since 2001) on the back of a big bounce in consumers’ assessment of the current situation; the expectations index weakened. The current assessment index was the strongest since July 2001, largely because of an improved view of the labor market. The labor market differential – those who believe jobs are plentiful minus those that believe jobs are hard to get – rose to 14.8%, the best since August 2001. As to expectations, fewer consumers expect to buy a car or home within the next six months and fewer expect stock prices or interest rates to be higher by this time next year.