The Conference Board, a private research group, has reported that U.S. consumer confidence showed significant growth in June due to a surge in expectations for the economy and a more positive outlook on the job market. This improvement surpassed economists’ projections, coming in at 109.7, compared to the anticipated 104.
The economic situation has been far from ideal in light of the recent pandemic. However, improved current conditions and changes in societal outlook suggest that economic recovery is possible. Despite this, the consumers’ expectations gauge suggests that some are anticipating a recession over the next six to twelve months. This index rose to 79.3 in June, with 80 points being the threshold that indicates an expectation of a recession within the next year.
On a brighter note, business and labor markets have seen considerable improvement as consumers express more positive feelings regarding current conditions, with The Conference Board reporting an increase from 148.9 to 155.3 in May to June.
Inflationary concerns have also been addressed in the latest monthly report, with the data showing a decline of expectations regarding inflation over the next year to the lowest levels since December 2020.
Whilst being the highest level since January 2022, it is worth noting that The Conference Board’s report states that consumers are still expressing ambiguity concerning economic recovery and potential challenges down the line.
Further reports are expected over the coming months as corporates and governments globally attempt to navigate recovery amidst what has been a uniquely challenging period for individuals and organizations alike.