U.S. consumer confidence jumps more than expected in June

The Conference Board announced on Tuesday its U.S. consumer confidence surged 12.2 points to 98.1 in June from 85.9 in May.

Economists had expected consumer confidence to come in at 91.8.

May’s consumer confidence reading was revised down from originally estimated 86.6.

The survey showed that the expectations index increased from 97.6 last month to 106.0 this month. Meanwhile, the present situation index rose from 68.4 in May to 86.2.

“Consumer Confidence partially rebounded in June but remains well below pre-pandemic levels,” noted Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “The re-opening of the economy and relative improvement in unemployment claims helped improve consumers’ assessment of current conditions, but the Present Situation Index suggests that economic conditions remain weak. Looking ahead, consumers are less pessimistic about the short-term outlook, but do not foresee a significant pickup in economic activity. 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.”