WASHINGTON: US consumer confidence unexpectedly rose in June to an 18-month high, driven by an upbeat outlook for family finances, according to survey data released Tuesday. The surprise jump in confidence indicates that consumers are feeling upbeat about their finances, despite the US. The Federal Reserve’s aggressive campaign to raise interest rates to combat high inflation.
The consumer confidence index rose to an 18-month high of 109.7 in June, up from a revised 102.5 in May, according to the Conference Board, a nonprofit group. “While earnings expectations fell slightly in June, new questions included in this month’s release found a significantly improved outlook for consumers’ family finances,” Dana Peterson, chief economist at the Conference Board, said in a statement.
“The financial situation will get ‘better’ in the next six months, while less than 14 percent expect it to get ‘worse,'” he said. Greater confidence was seen among consumers under the age of 35 and among consumers earning more than $35,000.
Despite June’s rosy picture, Peterson said, the expectations scale “continues to suggest consumers are anticipating a recession at some point in the next 6 to 12 months.” The cycle was halted. 10 straight hikes, but indicated two more hikes were likely before the end of the year.
Futures traders pegged at more than a 75 percent chance the US central bank will cut its benchmark lending rate by a quarter at its next meeting. will vote to raise the rate by a quarter percentage point on July 25-26, according to data from CME Group.
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