Job growth boosts consumer confidence
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Consumer sentiment rose slightly this month despite a sizeable drop in first-quarter economic output, an indication that consumers may believe the economy has rebounded from a tough winter and is growing, according to data released Friday from the University of Michigan and Thomson Reuters.
The organizations’ consumer sentiment index registered a 82.5 for June, up slightly from 81.9 and holding fairly steady for the month and the past six months, the survey said.
Although consumers recently found that the economy saw a surprisingly large contraction in the first quarter, they’ve been encouraged by better job-market prospects, according to the report.
In fact, with 40 percent saying they had seen finances improve since May, more consumers reported a better financial situation than at any time since 2007, the report said.
“Consumers did not expect such a negative report (on the nation’s economic output, or gross domestic product), but it will not cause them to revise their expectations of future economic growth,” said Richard Curtin, chief economist for the survey.
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