After dipping slightly a month earlier, consumers' confidence in the economy is on the rise again.
The Conference Board reports its Consumer Confidence Index now stands at 118.9 following its decline to 117.6 in May. While the Present Situation Index jumped to 146.3 from 140.6, the Expectations Index dipped from 102.3 last month to 100.6.
“Consumers’ assessment of current conditions improved to a nearly 16-year high (July 2001, 151.3),” said Conference Board Director of Economic Indicators Lynn Franco. Overall, she added, “consumers anticipate the economy will continue expanding in the months ahead, but they do not foresee the pace of growth accelerating.”
Consumers’ appraisal of current conditions improved in June. Those who say business conditions are “good” rose from 29.8% to 30.8%, while those think conditions are “bad” declined from 13.9% to 12.7%.
Their assessment of the labor market was also more positive. Those who see jobs as “plentiful” went from 30.0% to 32.8%; however, those who believe jobs are “hard to get” sipped to 18.0% from 18.3%.
There was less optimism about the short-term outlook, though. The percentage of consumers expecting business conditions to improve over the next six months dropped from 21.5% to 20.4%. On the other hand, those expecting conditions to worsen went down marginally to 8.9% from 10.3%.
The labor market remains mixed. The proportion of consumers who think there will be more jobs in the months ahead rose to 19.3% from 18.6%; but those anticipating fewer jobs also increased -- going from 12.1% to 14.6%.
The percentage of consumers expecting an improvement in their income rose from 19.1% to 22.2%, as the proportion expecting a decline was also higher -- going to 9.2% from 8.7.
The monthly Consumer Confidence Survey is conducted for The Conference Board by information and analytics provider Nielsen. The cutoff date for the preliminary results was June 15.