Consumer Confidence Better Than Expected in June
Consumer confidence beat expectations in June as US states started to reopen and lift stay-at-home orders, according to CNBC.
The Conference Board's consumer confidence index increased to 98.1 for June. Economists polled by Dow Jones anticipated consumer confidence to rise to 91 from 85.9 in May.
“The re-opening of the economy and relative improvement in unemployment claims helped improve consumers’ assessment of current conditions,” said Lynn Franco, senior director of economic indicators at The Conference Board. Franco continued, “the Present Situation Index suggests that economic conditions remain weak. Looking ahead, consumers are less pessimistic about the short-term outlook, but do not foresee a significant pickup in economic activity.”
“Faced with an uncertain and uneven path to recovery, and a potential COVID-19 resurgence, it’s too soon to say that consumers have turned the corner and are ready to begin spending at pre-pandemic levels,” said Franco.
The Board's present situation index increased to 86.2 from 68.4 in May.
Coronavirus cases have surged in several states over the past few weeks after lifting measures to curb the coronavirus pandemic. Investors drove up stock prices in May and consumer sentiment increased. However, some states have started to postpone reopening efforts which might dampen consumer spirit and stock prices.