WASHINGTON, DC – American consumer confidence, as measured by the Refinitiv/Ipsos Primary Consumer Sentiment Index, is at 48.8 for the month of June 2020. This represents a 3.4 point gain from last month.
Increase in the overall PCSI has reversed a two month downtrend. This is driven by an increase in all four sub indices. This is the first consensus growth amognst indices since January 2020. The most significant increase is observed in the Current index, up 4.5 points
from last month.
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American Consumer Confidence Is Rising As Coronavirus Restrictions Are Being Relaxed
“As coronavirus related restrictions are being increasingly relaxed at state and local levels, consumers are starting to feel increasingly confident in their personal financial situation as well as the economy overall.” Reports Chris Jackson of Ipsos, “Consumers appear to be less worried about the pandemic and are turning their focus, and optimism, towards restarting the economy.”
Jharonne Martis, Director of Consumer Research at Refinitiv, said, “May retail sales rebounded fueled by tax refunds, government stimulus checks, and Mother’s Day purchases. This follows two months of record declines. As a result, the Refinitiv retail/restaurant earnings index is still looking at a 72.4% estimated growth rate for Q2 2020."
The PCSI Current Condition Index shows an increase of 4.5 points since last month (currently at 36.7) as Americans are becoming more optomistic about the economy as a whole, their confidence on their current financial situations is becoming more optomistic as well.
The PCSI Expectations Index is up 2.9 points to stand at 65.6. Americans are feeling more confident about the economy's impact on their personal finances and their job security. Of all sub indices the Expectations Index is the only one that has seen gains compared to last year (+0.3) while all other sub indices are down at least 16 points.
The PCSI Investment Index is up 3.8 points from last month to 41.4. Comfort in making major purchases as well as other household purchases are both up. Moreover, Americans are starting to feel more confident in their ability to invest in their future.
The PCSI Jobs Index up 2.6 points currently standing at 53.0. Despite record level unemployment, confidence around job security and expecations has actually increased.