Two recent indexes measuring the outlook of consumers in the U.S. showed improvement in perceptions of current economic conditions and expectations for the future. The “Eye On Housing” blog from the National Association of Home Builders highlights the findings behind consumers’ optimistic outlook.
Consumer sentiment and consumer confidence are two indexes showing consumers’ perceptions of current business, income and employment conditions, as well as their expectations for the future’s economy.
In June, both the University of Michigan Index of Consumer Sentiment and the Conference Board Consumer Confidence Index rose. These gains reflect continuing improvement in several sectors of the economy. Strong job gains and an unemployment rate well off its peak, accumulating momentum in recent housing starts and sales, as well as a rebound in retail sales after a slow first quarter combine to point to consumers gaining confidence in the economic recovery.
In contrast to the slow, steady recovery in consumer confidence, plans to buy a home snapped back sharply after declining during the recession. The percentage of respondents planning to buy a home within 6 months more than doubled in the second half of 2010 and remains at elevated levels four years later.
