CONTINUED INCREASE IN CONSUMER CONFIDENCE
Updated: Nov 9, 2021
According to the Conference Board, the Consumer Confidence Index® increased again this past June. It has increased each of the previous four months. The Index now stands at 127.3 (1985=100), up from 120.0 in May. Current business and labor market conditions are assessed by the Conference Board’s Present Situation Index and that also rose from 148.7 to 157.7. expectations moving forward also show increased improvement.
“Consumer confidence is currently at its highest level since the onset of the pandemic’s first surge in March 2020,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board.
“Consumers’ assessment of current conditions improved again, suggesting economic growth has strengthened further in Q2. Consumers’ short-term optimism rebounded, buoyed by expectations that business conditions and their own financial prospects will continue improving in the months ahead.
While short-term inflation expectations increased, this had little impact on consumers’ confidence or purchasing intentions. In fact, the proportion of consumers planning to purchase homes, automobiles, and major appliances all rose—a sign that consumer spending will continue to support economic growth in the short-term. Vacation intentions also rose, reflecting a continued increase in spending on services.”
The Consumer Confidence Survey® is designed to reflect prevailing business conditions and likely developments for the months ahead. Its monthly report details consumer attitude, buying intentions, vacation plans and consumer expectation for inflation, stock prices and interest rates.
PRESENT SITUATION: According to the Conference Board, the appraisal of current business conditions by
consumers also improved in June.
• 24.5% of consumers said business conditions are “good”, up from to 19.9%.
• 19.5% of consumers claimed business conditions are “bad”, down from 20.6%. Consumers’ assessment of the labor market also improved.
• 54.4% of consumers said jobs are “plentiful”, up from 48.5%.
• 10.9% of consumers claimed jobs are “hard to get”, down from 11.6%.
Source: June 2021 Consumer Confidence Survey®