Tuesday, October 13th7.2°C

Steady job growth boosts US consumer confidence despite economy's slowdown

WASHINGTON - 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 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 per cent annual rate in the first quarter. On Wednesday, that estimate was revised much lower, to show a contraction of 2.9 per cent.

And so far, steady confidence hasn't yet translated into more spending. Consumer spending rose just 0.2 per cent 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 per cent from 3 per cent.

Still, there were other positive signs in the University of Michigan's report. Steady hiring is improving Americans' finances, the survey found. Forty per cent 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.

The Canadian Press

Read more Business News


Recent Trending

Today's Market
S&P TSX13844.73-119.63
S&P CDNX553.38+1.12
S&P 5002003.69-13.77
CDN Dollar0.7688+0.0012
Natural Gas2.496-0.002

Okanagan Companies
Pacific Safety0.215-0.010
QHR Technologies Inc1.23-0.02
Metalex Ventures0.07+0.02
Russel Metals20.96-0.30
Copper Mountain Mining0.60-0.06
Colorado Resources0.07+0.00
ReliaBrand Inc0.0225-0.0020
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.075-0.005
Decisive Dividend Corp3.07-0.18
Diamcor Mining1.00+0.03



2436000166 Terrace Hill Court
4 bedrooms 4 baths
more details
Click here to feature your property
Please wait... loading

Income for life?

Photo: Thinkstock.comIn almost every conversation I have with clients these days, the topic swings to interest rates. What direction they’re going, how long will they stay where they are and how...

Perfect (reno'd) home

Photo: Thinkstock.comHow many times have you found a home in the perfect location, but it needs too much work as per the home inspection? There is a great program available through most lenders that w...

5 Claim misconceptions

Photo: Thinkstock.comIf you have been hurt in an accident or as a result of medical negligence you will likely look to your friends and family for some advice on how to deal with the situation. These ...


Member of BC Press Council