In a sea of weaker than expected reports recently, today’s data on Consumer Confidence managed to buck the trend. In June’s report, overall confidence increased from 117.6 up to 118.9 compared to expectations for a decline to 116. While off its recent highs, overall confidence still remains right near its highest levels in more than 15 years and is well above the average of 93.8 going back to 2000. Within the June report, however, there was a bit of disparity in that while the Present Situation Index increased to a new multi-decade high, the Expectations Index pulled back. As a result, the spread between the two indices is at its widest level since February 2008.
One reason consumers likely have to be positive about their present situation is that jobs are easier to get than they have been at any other point since August 2001. The fact that confidence about the future hasn’t been keeping up with current conditions, though, suggests that consumers aren’t so sure that these jobs are long lasting.