Consumer confidence eases but remains high as recovery strengthens

WASHINGTON -- Consumer confidence dipped this month after reaching a five-year high in May, but remained strong, according to a private reading released Friday.

The consumer sentiment index from Thompson Reuters and the University of Michigan dropped to 84.1 in June from 84.5 last month. But the final June reading was an improvement over the preliminary figure of 82.7 released two weeks ago.

“Consumers now believe the recovery has achieved an upward momentum that will not be easily reversed,” said Richard Curtin, the survey’s chief economist.

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The survey’s findings were in line with the other leading private barometer, from the Conference Board, which was released Tuesday. That showed consumer confidence in June at its highest level since January 2008.

Curtin said consumers had adjusted to the slower pace of recovery, particularly in the jobs market, and their higher confidence sprang from increased wealth generated by rising housing and stock prices.

“To be sure, few consumers expect the economy to post robust gains or think the unemployment rate will drastically shrink during the year ahead,” he said. “Nonetheless, consumers anticipate continued slow economic progress.”

Upper income consumers, who are more likely to benefit from the housing market rebound and higher stock prices, were more optimistic than lower-wage earners, the survey showed.

Confidence among households with annual income above $75,000 reached its highest level since 2007, the survey said.

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