Consumer Comfort in U.S. Advanced Last Week to 18-Year High

(Bloomberg) -- American consumer sentiment jumped last week to the highest level in 18 years as a rally in the stock market contributed to increased optimism about the U.S. economy, personal finances and the buying climate.

The Bloomberg Consumer Comfort Index advanced 1.8 points in the week ended June 23 to 63.6, the highest since December 2000, data showed on Thursday. A gauge of views about the economy was the strongest since early 2001, while a measure of household finances improved to an almost 19-year high.

Key Insights

• Stock indexes at record highs and hourly earnings that have climbed at least 3% year-over-year for 10 consecutive months are probably contributing to increased optimism.
• Gains in comfort measures of household finances and the buying climate may also signal steady consumer spending after a government report two weeks ago showed a broad-based gain in May retail sales.
• Relief after President Donald Trump removed threats to increase tariffs on goods from Mexico in exchange for Mexican efforts to help curb illegal immigration into the U.S. may also have played a role in consumer views about the economy.
• The comfort gauge contrasts with a decline in the Conference Board’s monthly measure of consumer confidence, which fell to the lowest since 2017, as well as the University of Michigan’s sentiment gauge, which eased in early June.

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• Sentiment among Democrats and single Americans was at its highest since 2001.
• Other 18-year highs were recorded in the comfort indexes for women, consumers in the West and those with a college education.
• The index for those earning less than $50,000 advanced to highest in records back to 2010.

To contact the reporter on this story: Ryan Haar in Washington at rhaar3@bloomberg.net

To contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Vince Golle

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