U.S. consumer confidence rebounds in June, but rising COVID-19 infections a worry By Reuters

© Reuters. FILE PHOTO: Retail shops in Brooklyn as phase one reopening continues during outbreak of the coronavirus disease (COVID-19) in New York

WASHINGTON (Reuters) – U.S. consumer confidence grew more than expected in June, strengthening views that the economic downturn was likely over, though rising COVID-19 infections threatened to derail the budding recovery.

The Conference Board said on Tuesday its consumer confidence index rose to a reading of 98.1 this month from a downwardly revised 85.9 in May. Still, confidence remains 34.5 points below its pre-pandemic level. Economists polled by Reuters had forecast the index would rise to 91.8 in June.

“Consumers are less pessimistic about the short-term outlook, but do not foresee a significant pickup in economic activity,” said Lynn Franco, senior director of economic indicators at The Conference Board.

“Faced with an uncertain and uneven path to recovery, and a potential COVID-19 resurgence, it’s too soon to say that consumers have turned the corner and are ready to begin spending at pre-pandemic levels.”

The survey’s present situation measure, based on consumers’ assessment of current business and labor market conditions, jumped to a reading of 86.2 this month from 68.4 in May.

The expectations index based on consumers’ short-term outlook for income, business and labor market conditions jumped to 106.0 from a reading of 97.6 in May.

The percentage of consumers expecting an increase in income climbed to 15.1% this month from 14.6% in May and the proportion anticipating a drop fell to 14.4% from 15.4%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *