The American consumer’s confidence jumped in June to its highest level in 18 months, as a strong labor market continues to buoy the U.S. economy.
The Conference Board reported yesterday that its consumer confidence index rose to 109.7 in June, from 102.5 in May. That’s the highest the reading has been since January of 2022, and much higher than economists had forecasted.
The business research group’s present situation index — which measures consumers’ assessment of current business and labor market conditions — rose to 155.3 from 148.9 in May.
And the board’s expectations index — a measure of consumers’ six-month outlook for income, business and labor conditions — climbed to 79.3 from 71.5 in May.
The board said that consumers’ fears of a recession declined in June, with 69.3% of respondents saying a recession is somewhat or very likely in the next 12 months, down from 73.2% the month prior.
Stocks surged following the release of the report, in addition to other strong economic data: Both April home prices and May new home sales surprised to the upside. And durable goods orders grew in May too, even as economists had been expecting a decline.
“Consumer attitudes remain resilient,” Jefferies U.S. economist Thomas Simons wrote in a note on Tuesday. He added: “There are storm clouds on the horizon, but the consumer is growing tired of the expectation that a recession is imminent.”
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