Consumer Confidence Continues to Rise
According to the nonprofit think tank The Conference Board*, consumer confidence recently rose to its highest level in 17 months.
This was driven by several factors, including fewer worries about the possibility of a recession. However, spending plans were mixed.
While more Americans anticipated a real vacation instead of past years' staycations, plans for bigger purchases like homes and appliances cooled due to higher interest rates.
- Overall consumer confidence increased 7.2 points in June, reaching 109.7. This is the highest level since January 2022.
- Confidence in the Present Situation (aka now) rose 6.4 points.
- The Expectation Index (aka the future) climbed even more, from 71.5 to 79.3 points. This was the biggest jump in six months.
Respondent feedback was positive in most areas, with ratings for business conditions and the labor market rising. While there was still some optimism about the short-term outlook, these were somewhat lower, only rising by 1%.
While some respondents admitted they had put home-buying plans on hold, these decreases were marginal. Plans for new home purchases decreased to 0.5%, while those planning to buy an existing home fell to 2.2%.
* The Conference Board is a global, nonprofit think tank and business membership organization formed over 100 years ago. The board specializes in providing business, labor, climate, and consumer data.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.