Consumer Confidence Up

US consumer confidence is up in June and is at a nine-month high. The optimism is due to the surge in the stock market and some signs of economic stability are coming to rise. The Reuters/University of Michigan consumer survey rose to 69 from 68.7 in May. This was the fourth consecutive monthly increase. There are still pertinent issues facing the US economy, but job losses are starting to decrease from the past few months figures and housing prices have flattened in some regions.

This consumer survey is a good sign, because it shows that consumers are starting to believe in the US economy once again and are beginning to have confidence. Joshua Shapiro, chief US economist at MFR says "households are reverting to a more sustainable spending path vis-a-vis income that allows scope for paying down debt and adding to savings." This shows that Americans are becoming more wary of their spending habits, while this is good for the longer term stability of the economy and people's futures, it will not help the immediate status of the economy. The one thing that will help the economy is spending, and the current trend is towards savings.