US confidence hits six year high

 

arrow, dollar, moneyUS consumer confidence increased for the second straight month in June to its highest level since January 2008, when the US economy was sinking into recession, The Conference Board says.

The consumer confidence index rose to 85.2, up from 82.2 the previous month, with consumers more positive about the outlook for the labour market and holding greater expectations overall for the next six months.

“Expectations regarding the short-term outlook for the economy and jobs were moderately more favourable, while income expectations were a bit mixed. Still, the momentum going forward remains quite positive,” said Lynn Franco, director of economic indicators at The Conference Board.

More consumers saw current conditions as “good” than as “bad”, and those seeing job opportunities as rising increased to 16.3 per cent of respondents, while the number of those expecting fewer opportunities declined to 18.7 per cent.

Chris Christopher, director for US consumer economics at IHS Global Insight, noted the gains came despite rises in food and gasoline prices.

“Consumer confidence may take a hit during the summer months if food prices keep on increasing and consumers start feeling the pump-price pinch,” he said.

AFP

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