The Conference Board’s consumer confidence index increased moderately in June after edging down in May. The index rose to a reading of 118.9 (1985=100), up from 117.6 in May.

“Consumer confidence increased moderately in June following a small decline in May,” said Lynn Franco, director of economic indicators at The Conference Board. “Consumers’ assessment of current conditions improved to a nearly 16-year high (July 2001, 151.3). Expectations for the short-term have eased somewhat, but are still upbeat. Overall, consumers anticipate the economy will continue expanding in the months ahead, but they do not foresee the pace of growth accelerating.”   

Consumers’ assessment of the labor market was more positive although their outlook remained mixed. The proportion expecting more jobs in the months ahead increased to 19.3% in June from 18.6% in May. However, those anticipating fewer jobs also increased to 14.6% from 12.1%. The number of consumers stating that jobs were “plentiful” rose to 32.8% in June from 30.0% in May while those claiming jobs are “hard to get” edged down to 18.0% from 18.3%.

The percentage of consumers expecting their incomes to increase rose to 22.2% from 19.1% while the proportion expecting a decrease also edged up, to 9.2% from 8.7%.