U.S. consumer confidence has been affected by the pandemic and continues to be low. However, June marks the second consecutive monthly rise and came in above expectations. The University of Michigan’s measure of consumer confidence had dropped in March and April; however, the index rose 78.9 in June from 72.3 seen in the prior month.
Current conditions rebounded more than expected, rising to 87.8. This is a 13.5 point rebound from its low. Meanwhile, consumers’ perception of their own household finances has been dented by the crisis, but this is rebounding as well, noted Wells Fargo in a research report. The household finances index rose to 112, which is slightly over the three-month moving average of 108.3, possibly reflecting the swift rebound in the stock market.
“This is consistent with what we saw in yesterday’s release of household net worth figures from the Fed’s flow of funds report. The Q1 snapshot reflects March lows. If gains hold, this will rise”, added Wells Fargo.
