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Consumers Continue to be More Confident in June


Consumer confidence continued to improve for the fifth consecutive month in June, as measured by the Reuters/University of Michigan Survey of Consumers.

The Index of Consumer Sentiment reached 70.8 in June, a two-point improvement over May and more than 13 points higher than its low of 56.4 last June.

This is the third year-to-year change since mid-2007, according to the Survey. In June 2007, the Index was 96.9.

Consumer confidence is rising even as consumers report, "a heightened level of financial distress," the Survey states. The majority of families report a worsened financial situation and two-thirds expect their situation to remain poor or get worse during the next 12 months. Only 12% of consumers expect their inflation-adjusted income to rise.

"Consumers have become convinced that the steepest economic declines are now over, but very few consumers anticipate a quick end to the recession," said Richard Curtin, the Director of the Reuters/University of Michigan Surveys of Consumers.

"The majority of consumers reported that their financial situation had recently worsened, with income declines reported three times as frequently as income gains," Curtin added.

Read the full news release here.