U.S. consumer confidence rises in JuneConsumer confidence increased in June as consumers were more optimistic regarding business conditions, according to The Conference Board.
The Conference Board's Consumer Confidence Index rose to 85.2 in June from 82.2 in May. A reading of 90 or higher indicates a healthy economy.
The index measures how shoppers feel about business conditions, the job market and the next six months. Economists watch the index closely because consumer spending accounts for about 70 percent of economic activity and is a critical part of a strong rebound.
Those expecting business conditions to improve during the next six months increased to 18.8 percent from 17.7 percent, and those expecting business conditions to worsen increased to 11.4 percent from 10.7 percent.
Additionally, 16.3 percent expect more jobs during the next six months compared with 15.2 percent in May. Those expecting fewer jobs decreased from 18.9 percent to 18.7 percent.
"Consumer confidence continues to advance and the index is now at its highest level since January 2008," says Lynn Franco, The Conference Board's director of economic indicators. "June's increase was driven primarily by improving current conditions, particularly consumers' assessment of business conditions. Expectations regarding the short-term outlook for the economy and jobs were moderately more favorable, while income expectations were a bit mixed. Still, the momentum going forward remains quite positive."
Date : 7/8/2014