Consumer confidence jumps more than expected

The Conference Board’s consumer confidence index improved to 98 in June, much better than expected, and the highest level this year.

Economists had forecast that the consumer confidence index rose to 93.5 from a downward-revised print of 92.4, according to Bloomberg.

The index had leveled off after steady gains in the past few years.

“The headline was lifted by both the current conditions component (up 5.1 points), which tends to respond to the

unemployment rate, and the expectations index (up 6.0 points), which in the short-term is driven by movements in gas prices and stock prices, with a lag of a couple of months,” said Pantheon Macroeconomics’ Ian Shepherdson.

“Unless stock prices rebound fully from the drop in recent days, we’ll have to expect confidence to slip back a bit over the summer, but not to disastrously low levels.”

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