Consumer Confidence Increased in June to an Eight-Month High

[Purveyor]

Source: Bloomberg

June 28, 2016 — 10:02 AM EDT
Updated on June 28, 2016 — 10:34 AM EDT

Consumer confidence rose in June to an eight-month high as Americans became somewhat more optimistic about the economy, according to a report from the New York-based Conference Board on Tuesday.

Key Points

Confidence index climbed to 98 from a revised 92.4 in May (forecast was 93.5) from 92.4
Consumer expectations gauge for the next six months rose to a five-month high of 84.5 from 78.5
Measure of present conditions advanced to 118.3, the second-strongest reading since September 2007, from 113.2 in May

Big Picture

Respondents said they anticipated more job and income gains in the coming six months, which may help lift spending after a first-quarter slowdown. The cutoff date for the survey was June 16, a week before Britain’s decision to leave the EU caused stock prices to slump, so investors will have to wait for the July reading to get a better idea of the impact U.K. vote. If sustained, the pickup in confidence shows consumer spending will probably improve and spur the economy.





Read more: http://www.bloomberg.com/news/articles/2016-06-28/u-s-consumer-confidence-increases-to-98-in-june-from-92-4

[forest444]

1. This will be key in November.

There is an almost perfect correlation between consumer confidence figures in the 6 months or so before an election, and the incumbent party's chances of retaining the White House.

Not counting Dubya's selection by the Extreme Court in 2000, only once since consumer confidence was first measured by the University of Michigan in 1952 has this not played out: in 1968, when Hubert Humphrey lost despite the fact that consumer confidence was high.

It should be noted though that this had come on the heels of Vietnam and of course the fact that Humphrey (as deserving as he was) was handed the nomination when it should been Eugene McCarthy's.