U.S consumer confidence at five-year high in June

WASHINGTON — Americans’ confidence in the economy rose to its highest level in more than five years, bolstered by a more optimistic outlook for hiring.

The Conference Board, a New York-based private research group, said Tuesday that its consumer confidence index jumped to 81.4 in June. That’s the best reading since January 2008. And it is up from May’s reading of 74.3, which was revised slightly downward from 76.2.

Consumers’ confidence in the economy is watched closely because their spending accounts for about 70 percent of U.S. economic activity.

The report shows consumers are more positive about current economic conditions and have a more optimistic view of the economy and job market in the next six months.

Lynn Franco, director of economic indicators at the Conference Board, said that “suggests the pace of growth is unlikely to slow in the short-term, and may even moderately pick up.”

Employers added 175,000 jobs in May, nearly matching the average monthly gain for the past year. That’s enough to slowly lower the unemployment rate. The rate ticked up to 7.6 percent last month but has fallen 0.6 percentage points in the past year.

Americans have been resilient this year, despite tax increases and steep government spending cuts. Consumer spending rose at the fastest pace in two years in the first three months of the year. That helped the overall economy grow at a 2.4 percent annual pace during the January-March quarter.

Economists forecast that overall economic growth is slowing to a 2 percent annual pace in the April-June quarter, in part because they expect consumers have eased up on spending from the robust first-quarter pace.

So far, reports on consumer spending for the second quarter have been mixed. In April, consumer spending fell as income was unchanged. But spending appears to have rebounded in May, based on a preliminary report on retail sales. Americans spent more on cars, home improvements and sporting goods, boosting retail sales 0.6 percent.

The Commerce Department will release a more complete report on May consumer spending and income on Thursday.

The Conference Board survey is conducted in the first half of the month. So the June report didn’t capture the impact of Federal Reserve Chairman Ben Bernanke’s comments last week after the Fed’s policy meeting.

Bernanke said the Fed could begin to slow its bond purchases by the end of the year. Since then, stocks have plunged and interest rates have spiked.

More in Herald Business Journal

Amazon lists 20 finalists for HQ2, and no, we aren’t on it

Los Angeles was the only West Coast city listed. They seem to like the nation’s capital.

Strange and wonderful creatures come through door of Bothell clinic

At the Center for Bird and Exotic Animal Medicine, vets treat snakes, hedgehogs and even kangaroos.

Emirates orders 20 more Airbus A380 jumbos, saving program

The Dubai carrier also has options to buy 16 more. The program seems safe until 2029.

How do you retrieve an errant Boeing 737 from a muddy slope?

Turkish authorities used cranes to lift a plane that skidded off a runway.

Amanda Strong (left) tries on an Angel of the Winds Arena hat as she and Courtney Brown hand out gift bags after the renaming ceremony Dec. 13 in Everett. The new name replaces the Xfinity name. (Andy Bronson / Her file)
Angel of the Winds to break ground on $60M casino expansion

“We think we’re on the cusp of becoming a major resort.”

House passes bill aimed at lowering gender wage gap

The bill would hinder employers from retaliating against female workers who ask about others’ pay.

Planemaker joins forces with auto-industry supplier Adient

The new venture poses a threat to Zodiac Aerospace and Rockwell Collins

In this Dec. 20, 2017, photo, a clerk reaches to a shelf to pick an item for a customer order at the Amazon Prime warehouse, in New York. (AP Photo/Mark Lennihan, File)
Amazon’s potential HQ2 sites leaves many cities disappointed

Associated Press Amazon’s move to whittle its list for a second headquarters… Continue reading

Alaska Airlines has selected destinations for new service from Paine Field. (Alaska Airlines)
Alaska Airlines will fly from Everett to 8 West Coast cities

Two destinations that didn’t make the list were Spokane and Hawaii.

Most Read