Last Update: 02-Jul-15 16:46 ET
- The Conference Board’s Consumer Confidence Index increased to 101.4 in June from a downwardly revised 94.6 (from 95.4) in May. The Briefing.com Consensus expected the Consumer Confidence Index to increase to 97.5.
- The increase in the index brought it back in-line with March levels.
- The Expectations Index increased to 94.6 in June from 86.2 in May. The Present Situation Index rose to 111.6 from 109.5. That was the highest reading since it reached 112.1 in February.
- Typically, confidence follows trends in job market conditions, gasoline costs, and equity values. In June, strong improvements in job market conditions, as shown by an initial claims level that flirted with 15-year lows throughout the month, outweighed gasoline price increases.
- The increase in confidence does not necessarily mean consumption growth will also accelerate. Consumption is tied to income growth. As long as income continues to expand, consumption growth should follow.
- Consumer sentiment has little influence on consumption. As long as payroll levels continue to expand, the resulting income growth should keep consumption gains steady regardless of the monthly ebbs and flows in sentiment.
|Employment ('plentiful' less 'hard to get')
|1 yr inflation expectations