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US consumer confidence approaching prepandemic level
June 29, 2021 | Chart
The Conference Board Consumer Confidence Index® (CCI) improved further in June, following gains in each of the previous four months. The Index now stands at 127.3 (1985=100), up from its trough of 85.7 in April 2020 and just below its pre-pandemic reading of 132.6 in Feb 2020. The steady rise in confidence bodes well for the US economic recovery.
The improvement in the headline CCI in June was driven by upticks in both of its two components – The Present Situation Index and The Expectations Index. Consumers’ assessment of current conditions improved again, suggesting economic growth has strengthened further in Q2. Additionally, consumers’ short-term optimism rebounded, buoyed by expectations that business conditions and their own financial prospects will continue improving in the months ahead. While short-term inflation expectations increased, this had little impact on consumers’ confidence or purchasing intentions. In fact, the proportion of consumers planning to purchase homes, automobiles, and major appliances all rose—a sign that consumer spending will continue to support economic growth in the short-term. Vacation intentions also rose, reflecting a continued increase in spending on services.
For more information on the details of this month’s Consumer Confidence Index please visit our website (link)
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