Last Update: 24-Jun-14 10:30 ET
- The Conference Board's Consumer Confidence Index increased to 85.2 in June from a downwardly revised 82.2 (from 83.0) in May. The Briefing.com consensus expected the index to increase to 84.0.
- The index is at its highest point since the recession began in January 2008.
- A surging stock market and general improvements in overall employment conditions were enough to offset higher gasoline/oil prices and drive consumer confidence a 6 year high.
- The increase in consumer confidence does not necessarily mean that consumption growth will also strengthen. Consumption gains are reliant on income growth. As long as the labor market continues to to trend higher, consumption growth should follow.
- Income gains are the main catalyst for spending, yet rising levels of confidence over time tend to help on matters of discretionary spending.
|Employment ('plentiful' less 'hard to get')
|1 yr inflation expectations