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WASHINGTON (AP) — The American consumer's confidence jumped in June to its highest level in 18 months as a strong labor market continues to buoy the U.S. economy.
The Conference Board reported Tuesday that its consumer confidence index rose to 109.7 in June from 102.5 in May. That's the highest the reading has been since January of 2022.
The business research group’s present situation index — which measures consumers’ assessment of current business and labor market conditions — rose to 155.3 from 148.9 in May.
The board’s expectations index — a measure of consumers’ six-month outlook for income, business and labor conditions — climbed to 79.3 this month from 71.5 in May.
A reading under 80 often signals a recession in the coming year. The Conference Board noted that reading has come in below 80 every month but one since February of 2022.
Consumer spending, which makes up about 70% of U.S. economic activity, has held up well despite the Federal Reserve raising interest rates in its effort to cool the economy and bring down persistent, four-decade high inflation. At its last meeting, the Fed elected not to increase its benchmark borrowing rate after raising it 10 straight times over 15 months.
Economists surveyed by FactSet expected that consumer confidence rose much more modestly in June from May, to 103.9.