The figure exceeds projections as other key indicators are up as well.
Confidence among consumers climbed in June to the highest level in more than five years, signaling spending will probably accelerate after cooling this quarter.
The Conference Board’s index rose to 81.4, exceeding all forecasts in a Bloomberg survey and the highest since January 2008, from a revised 74.3 in May, data from the New York-based private research group showed today. The median forecast of 77 economists surveyed by Bloomberg called for a reading of 75.1.
Rising residential property values and stock prices, combined with gains in employment, have spurred demand for housing and automobiles as households gain confidence the expansion will be sustained. Nonetheless, the recent slump in shares and surge in interest rates pose a risk to sentiment should hiring also suffer.
“Consumers are feeling more comfortable,” Tom Simons, an economist at Jefferies in New York, said before the report. “It’s more likely that they may be willing to make larger discretionary purchases which of course fuels consumption.”
Forecasts in the Bloomberg survey of economists ranged from 72 to 79.5 after a previously reported 76.2 in May. The measure averaged 53.7 in the recession that ended in June 2009.
Other figures today showed home prices, new-home sales and durable goods orders climbed more than forecast.