US consumer confidence reached its highest level since early 2022 in June as optimistic forecasts for the future boosted sentiment, official data showed on Tuesday.
In June, the Conference Board index surged to 109.7 from May’s 102.5, exceeding all projections from Bloomberg polls.
Indicators of present conditions among the group rose to 155.3, their highest point in over two years. Consumers’ six-month outlook, as measured by an index of expectations, increased to 79.3.
“Although the expectations Index remained a hair below the threshold signaling recession ahead, a new measure found considerably fewer consumers now expect a recession in the next 12 months compared to May,” said Dana Peterson, the chief economist at the Conference Board.
The Conference Board reports that the average inflation rate forecast for the coming year has dropped to its lowest level since December 2020. The Federal Reserve’s preferred core inflation index is expected to have remained elevated in May, according to data due out on Friday.
