The Consumer Confidence Index, released by the Conference Board, rose in June. Consumers were quite optimistic about current conditions, but less optimistic about the near term outlook than in May.
The Consumer Confidence Index increased to 118.9 in June, from 117.6 in May. The present situation index rose from 140.6 to 146.3 while the expectations index decreased from 102.3 to 100.6.
Consumers’ assessments of current business conditions strengthened. The share of respondents reporting business conditions “bad” decreased by 1.2 percentage points from 13.9% to 12.7%, mostly offset by the net increase in the share of respondents reporting business conditions “good” (1.0 percentage point).
Consumers were also optimistic about current employment conditions. The share of respondents reporting that jobs were “plentiful” increased from 30% to 32.8%, while assessments of “jobs not so plentiful” decreased by 2.5 percentage points and “jobs hard to get” declined by 0.3 percentage point.
Expectations of business conditions over the next six months were mixed. The share of respondents expecting future business conditions to be the same increased by 1.5 percentage points from 68.2% to 69.7%, with the net gain coming from the net declines in the shares of respondents expecting business conditions to be better (1.1 percentage points) and worsen (0.4 percentage point).
Similar to expectations of business conditions, expectations of employment conditions over the next six months were also mixed. The share of respondents expecting “same jobs” in the coming six months dropped by 3.2 percentage points from 69.3% to 66.1%, while expectations of “fewer jobs” and “more jobs” increased by 2.5 percentage points and 0.7 percentage point, respectively.
The Conference Board also reported the share of respondents planning to buy a home within six months. There were 5.9% of respondents planning to buy a home in June, compared with 6.1% in May. Despite the monthly volatility, the trend in the share of respondents planning to buy a home within six months has been climbing.