The Conference Board’s Consumer Confidence Index rose nearly seven points in June after a small gain in May, putting it above the 100 mark for the third time this year.
The index came in at 101.4 versus its revised 94.6 finish in May.
The Present Situation Index was up 4.5 points, to 111.6 from 107.1, while the Expectations Index grew 8.4 points to 94.6 from 86.2.
“Over the past two months consumers have grown more confident about the current state of business and employment conditions,” said Lynn Franco, director of economic indicators at The Conference Board. “In addition, they are now more optimistic about the near-term future, although sentiment regarding income prospects is little changed.
“Overall, consumers are in considerably better spirits, and their renewed optimism could lead to a greater willingness to spend in the near term,” Franco concluded.
The percentage of consumers expecting better business conditions before the end of the year rose to 18.5 percent from 16 percent a month ago, while those expecting deteriorating business conditions fell to 9.8 percent from 11.3 percent.
But while consumers have grown more positive in their assessment of the nation’s economy, they don’t necessarily see those better conditions helping their own incomes. Those expecting growth in their incomes remained unchanged at 17.5 percent, while the proportion of those expecting a decline fell less than a point, to 10.2 percent from 10.7 percent.
Those expecting to take a vacation in the next six months rose to 45.1 percent of the sample, up from 42.8 percent in April but lower than the 46.8 percent registered in February. The Conference Board includes vacation intentions in its surveys every other month.
Preliminary results for the June index were completed on June 18.