US Consumer Confidence Strengthens

30 June 2005

Consumer confidence in the US has recovered, according to the closely watched Conference Board index.

June showed a second monthly successive rise, to 105.8, up from 103.1 in May, and hitting a three year high.

The index suggests consumers are more confident about employment, with fewer people (22.6%) saying jobs were hard to get. That figure was 24.1% in May

Shoppers appear to have taken to heart remarks by US Treasury Secretary John Snow, who says energy prices are "way too high" and "hurting", but they will not derail "the strong recovery we're in".

Says Lynn Franco, who heads the Conference Board's Consumer Research Center: "This improvement in consumers' mood suggests that business activity and labour market activity will continue to pick up over the next several months."

Data sourced from BBC Online; additional content by WARC staff