Finance

US consumer confidence jumps most since 2011 as the economy reopens

  • Consumer confidence in June jumped to 98.1 from 85.9 in May, according to a Tuesday report from The Conference Board.
  • Economists surveyed by Bloomberg expected the index to gain to 90.5. The jump was the biggest since 2011. 
  • “The re-opening of the economy and relative improvement in unemployment claims helped improve consumers’ assessment of current conditions,” said Lynn Franco, senior director of economic indicators at The Conference Board.
  • Visit Business Insider’s homepage for more stories.

Consumer confidence in June jumped the most since 2011, beating economists’ expectations, as the US reopened its economy and loosened some pandemic restrictions, according to a Tuesday report from The Conference Board.

The organization’s consumer conference index surged to 98.1 in June from 85.9 a month earlier, beating the 90.5 estimate from economists surveyed by Bloomberg.

The present situation index, which measures consumer assessment of current business and labor market conditions, jumped to 86.2 from 68.4 a month earlier. The expectations index, which measures short-term business, income, and labor outlooks, rose to 106 in June from 97.6 in May. 

“The re-opening of the economy and relative improvement in unemployment claims helped improve consumers’ assessment of current conditions,” said Lynn Franco, senior director of economic indicators at The Conference Board.

Read more: BANK OF AMERICA: Buy these 8 retail stocks as they rake in revenues from an unprecedented surge in home-improvement spending

The cutoff date for the results of the survey was June 18. Since, COVID-19 cases have continued to climb in some states, prompting them to delay reopening phases or walk back new rules. Texas, California, Florida, and Arizona have rolled back reopening plans and imposed new restrictions as local COVID-19 cases have spiked.

“Looking ahead, consumers are less pessimistic about the short-term outlook, but do not foresee a significant pickup in economic activity,” said Franco. “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.”

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