- Posted July 01, 2014
- Tweet This | Share on Facebook
Steady job growth boosts U.S. consumer confidence
By Christopher S. Rugaber
AP Economics Writer
WASHINGTON (AP) - Strong job growth lifted U.S. consumer confidence this month, as Americans looked past the economy's dismal first quarter performance.
The University of Michigan said last Friday that its index of consumer sentiment rose slightly to 82.5 in June from 81.9 in May. That is still below April's reading of 84.1, which had been the highest in almost a year.
Confidence "has remained largely unchanged for the past six months," said Richard Curtin, an economist at the University of Michigan and director of the survey. "This was remarkable" given that the economy shrank in the first quarter.
Still, the survey was mostly conducted when the government had estimated that the economy contracted at a 1 percent annual rate in the first quarter. Last Wednesday, that estimate was revised much lower, to show a contraction of 2.9 percent.
And so far, steady confidence hasn't yet translated into more spending. Consumer spending rose just 0.2 percent in May after a flat reading in April. Weaker spending suggests growth won't rebound as strongly as many economists had hoped. Some marked down their forecasts for growth in the second quarter, to roughly 2.5 percent from 3 percent.
Still, there were other positive signs in the University of Michigan's report. Steady hiring is improving Americans' finances, the survey found. Forty percent of respondents said their finances had improved in June, the most in seven years.
And more Americans say it is a good time to sell a home, which can help fuel sales as most people need to sell their home before buying a new one. For the first time in eight years, half of all homeowners said sales conditions were positive.
Published: Tue, Jul 01, 2014
headlines Oakland County
headlines National
- 50 Years of Service: ABA has been a ‘stalwart ally’ for LSC funding
- ACLU and BigLaw firm use ‘Orange is the New Black’ in hashtag effort to promote NY jail reform
- Biden recalls time he bluffed knowledge of torts case and why he changed his mind about civil-trial work
- Lawyers’ ‘barrage of personal attacks’ on opponents started with tissue-box toss, appeals court says
- Longtime prosecutor resigns after judge tosses him from case, citing Perry Mason-type revelations
- 24% of law students expect to work in public service, survey says