US consumer confidence strengthens in June, recession concerns ease
By Alexander Bueso
Date: Tuesday 27 Jun 2023
(Sharecast News) - Consumer confidence in the US bounced back led by younger Americans with fewer respondents expressing concern over a looming recession.
The Conference Board's consumer confidence index rose from a reading of 102.5 for May to 109.7 in June (consensus: 103.5).
A gauge tracking assessments of the present situation was rose from 148.9 to 155.3 and that for expectations from 71.5 to 79.3.
Commenting on the latest survey readings, Conference Board chief economist, Dana Peterson, noted that the expectations gauge continued to signal that consumers saw a recession ahead over the next six to 12 months.
Nevertheless, June's reading for the expectations gauge was only a "shade" beneath the 80 point threshold typically associated with a recession over the next year, the survey compiler said.
Indeed, according to Peterson, a new measure found that "considerably fewer" consumers than in May were now expecting a recession.
Peterson also called attention to the "notably brighter" outlook for consumers' family finances.
"This might reflect consumers' belief that labor market conditions will remain favorable and that there will be further declines in inflation ahead," she said.
"Indeed, the 12-month forward inflation expectations gauge fell to 6 percent in June, the lowest reading since December 2020."
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