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Consumer confidence up
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June 30, 1998: 10:49 a.m. ET
June index rises more than 1 point to 137.6; consumers call economy 'healthy'
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NEW YORK (CNNfn) - Despite incipient signs of an economic slowdown, American consumers continue to view the U.S. economy and job market as "healthy and strong" -- and they demonstrated their enthusiasm with pocketbook largesse in June, a private survey of household spending habits showed Tuesday.
The U.S. consumer confidence index rose more than point in June to 137.6 from a revised level of 136.3 in May as a buoyant job market fueled high levels of household spending.
"Despite continuing turmoil in Asia and growing questions about the strength of the stock market, consumer confidence continues to top year-ago levels," said Lynn Franco, associate director of the Conference Board's consumer research center.
The survey is conducted for the board each month by NFO Research Inc. of Greenwich, Ct.
Bond traders took the consumer confidence figures in stride, reacting instead to data from a separate survey of Chicago purchasing managers suggesting weakness in the manufacturing sector. The 30-year benchmark Treasury rose 2/32 to yield 5.64 percent
The expectations component -- a barometer of economic trends in months to come -- rose to 115.2 from a revised May rate of 113.3. The present situation index jumped in June to 171.1, from 170.9
Roughly 44 percent of those surveyed felt that jobs are plentiful, while less than 11 percent expected a contraction in the job market over the next six months. In May, 12 percent said they foresaw a dwindling of available jobs in the months ahead.
Fewer consumers -- 25 percent -- however, anticipated a rise in their incomes over the next six months, as compared with 28 percent in May.
Every month, the Conference Board surveys about 5,000 American households to gauge their spending habits. The exercise is more than academic since consumer spending accounts for an estimated two-thirds of the nation's overall economic activity. 
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The Conference Board
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