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The Conference Board Consumer Confidence Index® (CCI) improved
further in June, following gains in each of the previous four months. The
Index now stands at 127.3 (1985=100), up from its trough of 85.7 in April
2020 and just below its pre-pandemic reading of 132.6 in Feb 2020. The steady
rise in confidence bodes well for the US economic recovery.
The improvement in the headline CCI in June was driven by upticks in both of
its two components – The Present Situation Index and The Expectations Index.
Consumers’ assessment of current conditions improved again, suggesting
economic growth has strengthened further in Q2. Additionally, consumers’
short-term optimism rebounded, buoyed by expectations that business
conditions and their own financial prospects will continue improving in the
months ahead. While short-term inflation expectations increased, this had
little impact on consumers’ confidence or purchasing intentions. In fact, the
proportion of consumers planning to purchase homes, automobiles, and major
appliances all rose—a sign that consumer spending will continue to support
economic growth in the short-term. Vacation intentions also rose, reflecting
a continued increase in spending on services.
For more information on the details of this month’s Consumer Confidence Index
please visit our website.
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