Consumer Confidence Is Rising, but Not in the Housing Market
Easing inflation led to the highest reading of consumer confidence in 17 months in June, but Americans remain wary about homebuying
July 5, 2023
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As recession concerns eased, consumer confidence rose to its highest level in 17 months in June, but spending patterns varied amid a shift in consumer preferences from goods to services, according to the National Association of Home Builders' Eye on Housing. The Consumer Confidence Index, reported by the Conference Board, revealed a favorable assessment of the labor market but lingering hesitancy in the housing market.
The share of respondents planning to buy a home within the next six months fell slightly to 5.5% in June with a 0.5% drop in demand for newly constructed homes and a 2.2% decline in the share of buyers planning to purchase an existing home.
The Consumer Confidence Index, reported by the Conference Board, increased 7.2 points from 102.5 to 109.7 in June, the highest level since January 2022. The Present Situation Index rose 6.4 points from 148.9 to 155.3, and the Expectation Situation Index climbed 7.8 points from 71.5 to 79.3, the highest since December 2022. However, it’s still lingering around 80 – a level associated with a recession.
