Consumer confidence snaps back to pre-coronavirus levels

Consumer confidence increased for a fifth straight month in June and returned to levels last seen before the onset of the COVID-19 pandemic.

The Consumer Confidence Index this month rose 7.3 points to 127.3, the highest since February 2020, The Conference Board said on Tuesday.

The Present Situation Index, which is based on consumers’ assessment of current business conditions and the labor market, increased to 157.7 from 148.7 last month. The Expectations Index, which measures consumers’ short-term outlook for income, business and the job market, jumped to 107.0 from 100.9 the prior month.    

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"Consumers’ assessment of current conditions improved again, suggesting economic growth has strengthened further in Q2," said Lynn Franco, senior director of economic indicators at The Conference Board. 

The percentage of consumers who said business conditions are "good" rose to 24.5%, up from 19.9% last month. Additionally, 54.4% of consumers said jobs are "plentiful," up measurably from 48.5% in May. Short-term outlooks for business conditions and financial prospects also increased.

However, optimism for the labor market in the short term was mixed.   

Just 25.7% of consumers expected more jobs to be available in the months ahead, down from 27.7%, while 16% said there would be fewer jobs, declining from 17.5% last month. 

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The rebound in consumer confidence echoes the strong beliefs chief executives have about the economy.

Seventy-seven percent of CEOs believe there will be "strong" or "very strong" growth over the next 12 months, according to a survey conducted by advisory firm Deloitte.