Consumer Confidence Soars and Inflation Expectations Rise, Raising Doubts About More Government Spending
John Carney 29 Jun 2021
Consumer confidence rose more than expected in June, even as negotiations for trillions of dollars of additional government spending were stalled by radical leftwing demands for additional social welfare and climate change programs in a bill supposedly focused on infrastructure improvements.
The Conference Board said Tuesday that its index of consumer confidence rose to 127 from 120 in May. Economists had forecast a slight slip to 119.
“The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—rose from 148.7 to 157.7. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—improved to 107.0, up from 100.9 last month,” the Conference Board said.
The stronger-than-expected results cast doubt on the need for additional government spending. With inflation already running high, the pandemic in retreat thanks to vaccinations, and the economy growing at a swift pace, it increasingly looks like the appropriate time to reduce the level of federal economic intervention.
“Consumer confidence increased in June and is currently at its highest level since the onset of the pandemic’s first surge in March 2020,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “Consumers’ assessment of current conditions improved again, suggesting economic growth has strengthened further in Q2.”
Inflation expectations are rising but not yet affecting consumer behavior, Franco said.
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https://www.breitbart.com/economy/2021/06/29/consumer-confidence-soars-and-inflation-expectations-rise-raising-doubts-about-more-government-spending/
