Consumer confidence rose in June, with consumer’s appraisal of current economic conditions hitting a nearly 16-year high, according to the Conference Board.
The Conference Board’s Consumer Confidence Index, which fell in May, bounced back in June, the board said on Tuesday. The is now at 118.9, up from 117.6 in May. The index had been expected to decline to to 116, according to economists estimates.
Consumers’ appraisal of current conditions drove the index upward. The share of consumers saying that business conditions are “good” increased to 30.8 percent from 29.8 percent in May. Those saying conditions are bad fell to 12.7 percent from 13.9 percent.
Consumers’ views of the labor market also improved. Those saying jobs are plentiful rose to 32.8 percent, up from 30.0 percent. Those who take a negative view, saying jobs are “hard to get,” feel to 18.0 percent from 18.3 percent.
Despite this rise in positive sentiments about current conditions, consumers were slightly less optimistic about the short-term outlook than a month earlier. The share of those saying they expect conditions to improve over the next six-months fell to 20.4 percent from 21.5 percent. On the other hand, those who expect conditions to worsen declined to 9.9 percent from 10.3 percent.
In other words, more Americans feel good about business conditions and jobs but fewer expect things to get even better in the near term.