Consumer Confidence Index for June shows slight drop from 5-year high in May but remains much higher than a year ago.
Consumers believe the economic recovery will continue, and the monthly Consumer Confidence survey results indicate that.
The Consumer Confidence Index, which gauges consumer attitudes toward the economy, was at 84.1 for June, a slight drop from May’s five-year high of 84.5 but a huge jump from the June 2012 rating of 73.2. The drop was expected but was also less than forecast two weeks ago.
The Consumer Confidence Index is produced by the Thomas Reuters/University of Michigan Institute for Social Research Surveys of Consumers.
“Consumers now believe the recovery has achieved an upward momentum that will not be easily reversed,’’ said Richard Curtin, the Surveys of Consumers chief economist. “Few consumers expect the economy to post robust gains or think the unemployment rate will drastically shrink during the year ahead. Nonetheless, consumers anticipate continued slow economic progress.”
The Spectrem Affluent Investor Confidence Index was unchanged in June, while the Spectrem Millionaire Investor Confidence Index jumped two points. The index measures the investment confidence and outlook of households with more than $500,000 of investables and more than $1 million of investables, respectively.
According to the University of Michigan report, the continued higher numbers result from a concentration of confidence from households with income above $75,000, with their confidence rising to its highest level since mid-2007. While upper income households are enjoying gains due to growth in stock prices and home values, lower income households reported far less confidence, although almost everyone surveyed reported a belief that there will continue to be modest gains in the economy.
The Current Conditions Index for June was at 93.8, a drop from May’s record-breaking high of 98.0 but well above last June’s 81.5.
Younger households were more likely to report income gains in the June survey, while older households were more likely to cite lower incomes and falling living standards.
Consumer confidence showed in home buying plans. The most consumers since 2006 reported that home selling conditions were favorable. Rising home values were reported by the highest proportion of consumers since 2007, and the highest proportion of homeowners expected additional increases in their home’s value during the year ahead. Among those surveyed, less than one-in-10 said they would lose money if they sold their home today, while last year’s number was two-in-10.
The Spectrem report for June indicated millionaire and non-millionaire investors planned to increase investment participation, with a preference for safer cash investments, as a result of greater confidence.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.