Consumer confidence surges in June after abysmal May
WASHINGTON (6/29/15)--After falling by 5.2 points in May, the University of Michigan’s measure of consumer confidence jumped by 5.4 points in June, pushing the overall index to its highest level since January (Economy.com June 26).
The current conditions subindex climbed more than eight points to a five-month high during the month to 108.9, the highest mark since January 2007, save for January of this year.
Further, 44% of those surveyed said they were better off financially than they were a year ago, a 3% increase from May, while only 25% said they were not doing as well, a 5% drop month-over-month.
“June’s reading is another sign that points to a stronger second half of the year,” said Nate Kelley, Moody’s analyst (Economy.com). “The job market has been performing well on a consistent basis and inflation has been tame. The confluence of these two factors is a likely reason why sentiment is improving after a weak start to 2015.”
Additional numbers from the report:
32% of respondents said their income was higher than it was a year ago, a slight step back from May. However, only 21% said they are making less than they were last year, a 4% improvement from May’s reading;
63% said that business conditions improved from a year earlier, a steep increase from the 56% who said as much last month, while 23% said conditions worsened, a sharp drop from the 33% seen the month before; and
- 69% said it was a good time to purchase an automobile, up from 65% in May, while 78% said it was a good time to purchase a home, down from 82%.