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Updated: U.S. Consumer Confidence Rises To 85.2 In June

By Kitco News
Tuesday June 24, 2014 10:00 AM

Editor's Note: The article was updated to include more information from the report and comments from forexlive.com

(Kitco News) - U.S. consumers were feeling extremely optimistic in June, according to the latest data from the Conference Board.

On Tuesday, the board reported that its monthly Consumer Confidence Index rose to 85.2, up from May's revised decline to 82.2; May's initial reading was 83.0. According to consensus reports, economists were expecting to see the index rise to between 83.6 and 84.0.

Lynn Franco, director of economic indicators at The Conference Board said that the index is now at its highest level since January 2008.

"June’s increase was driven primarily by improving current conditions, particularly consumers’ assessment of business conditions. Expectations regarding the short-term outlook for the economy and jobs were moderately more favorable, while income expectations were a bit mixed. Still, the momentum going forward remains quite positive,” said Franco.

Looking at the components of the report, the present situation index increased to 85.1, compared to the previous reading of 80.3; the expectations index rose to 85.2, compared May’s reading of 83.5.

Consumers were had a more positive outlook for the labor market, the report said. Those anticipating to see more jobs in the near-term increased to 16.3%, compared to the previous reading of 15.2%; at the same time respondents expecting few jobs decreased slightly to 18.7%, compared to the previous level of 18.9%.

There was some uncertainty ahead of the Conference Board’s report; on June 13, the preliminary University of Michigan/Thomson Reuters consumer sentiment survey showed a decline in consumer optimism, dropping to 81.2 from May’s final reading of 81.9.

Ryan Littlestone, analyst at forexlive.com explained that the increase in consumer confidence should translate into more consumer spending. “Unfortunately that hasn’t transpired to any meaningful degree over the last few years.”

By Neils Christensen of Kitco News; nchristensen@kitco.com

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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