US consumer confidence rises to highest level since early 2022
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US consumer confidence rose in June to the highest level since early 2022 as views on current and future conditions improved.
The Conference Board’s index rose to 109.7 this month from 102.5 in May, data out on Tuesday (Jun 27) showed, exceeding all estimates in a Bloomberg survey of economists.
The group’s gauge of current conditions jumped to 155.3, the highest level in almost two years. A measure of expectations – which reflects consumers’ six-month outlook – rose to 79.3.
“Although the expectations Index remained a hair below the threshold signaling recession ahead, a new measure found considerably fewer consumers now expect a recession in the next 12 months compared to May,” said Dana Peterson, the chief economist at the Conference Board.
More consumers said jobs were “plentiful” in June. The share of respondents reporting that jobs were hard to get edged lower, to 12.4 per cent, and their expectations for the labour market six months from now improved. About 15.5 per cent said they expect more jobs to be available in the coming months.
The difference between the current “plentiful” and “hard-to-get” measures – a metric watched closely by economists as a gauge of labor-market strength – widened to 34.4, erasing much of the previous month’s deterioration.
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Buying plans for cars, homes and major appliances slowed, which the Conference Board said may reflect higher borrowing costs. The share of consumers who reported intentions to take a vacation in the next six months fell.
The median inflation rate seen over the next 12 months eased to the lowest level since December 2020, according to the Conference Board. Data out on Friday is projected to show the Federal Reserve’s preferred core inflation metric remained elevated in May. BLOOMBERG
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