For the second month in a row, The Conference Board reports an increase in a key tracking index.
The Consumer Confidence Index passed analyst expectations and increased to 105.8. A rating of 104 had been widely expected after May’s index reached 103.1.
A survey of a sample of 5,000 households by research firm TNS NFO provided the information for the latest index. This rating of 105.8 represents a three-year high. At least 2,500 responses comprise the latest survey, according to a Business Week report.
“The improvement in consumers’ mood suggests that business activity and labor market activity will continue to pick up over the next several months,” said Lynn Franco, Director of The Conference Board’s Consumer Research Center.
“And, with consumers in better spirits, and job concerns remaining relatively steady, there is little reason to expect a dramatic shift in consumers’ spending.”
The Conference Board also reported an improvement in the employment picture. Consumers saying jobs are “hard to get” decreased to 22.6 percent from 24.1 percent, but those claiming jobs are “plentiful” was virtually unchanged at 22.6 percent.
For the first time in nearly three years, the percentage of consumers saying jobs are “hard to get” does not exceed the percentage saying jobs are “plentiful.”
Consumer spending accounts for roughly two-thirds of economic activity in the United States. Investors heavily track consumer confidence, and have pushed the Dow Jones Industrial Average up in afternoon trading on news of the increase.
David Utter is a staff writer for murdok covering technology and business. Email him here.
