The Conference Board index climbed 12.2 points to 98.1 points, while analysts expected 91 points.
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American consumer confidence improved significantly in June thanks to the reopening of the economy, according to the Conference Board index released on Tuesday.
The index climbed 12.2 points to 98.1 points exceeding the expectations of analysts who had counted on 91 points.
“Consumer confidence partially rebounded in June but remains well below pre-pandemic levels,” said Lynn Franco, senior director of economic indicators at the Conference Board, however.
The reopening of the economy and the decline in the number of people applying for unemployment benefits have helped to improve consumers’ assessment of current economic conditions “but the index measuring the current situation suggests that economic conditions remain weak”, adds she said in a statement.
In addition, if consumers are less pessimistic about the short-term outlook, they do not expect a “strong recovery” in the economy.
“Faced with an uncertain and uneven recovery trajectory, and with the possible resurgence of the Covid-19, it is too early to say that consumers have taken a new turn and are ready to start spending at pre-pandemic levels “, She commented.
Household consumption is the main driver of the US economy, accounting for some 70% of GDP.
In detail, the percentage of consumers who rated the economic situation as “good” increased from 16.4% to 17.4%.
At the same time, the share of consumers who believe that the economic situation has deteriorated has decreased from 51.2% to 43.2%.
Consumers’ assessment of the labor market was also more favorable. The percentage of consumers reporting that jobs are “plentiful” fell from 16.5% to 20.8%, while those reporting that jobs are “hard to find” fell to 23.8% from 29.2 % in May.
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