Consumers Reemerge in June
The recent positive outlook of the housing market has caused a surge in consumer confidence, a June report reveals. Despite the dismal performance in Wall Street, consumers are not panicking and are actually spending.
Confidence of consumers has reached its five-year high in June, reaching 81.4 percent. This is important for investors who closely monitor the spending patterns of consumer, since they make up more than 70 percent of the entire US economy.
The confidence came after strong business and labor market conditions that started during the first quarter of 2013.
Experts have also credited the slowly building housing prices for the increase in consumer confidence. The increase in home values in several markets of the country provided homeowners with a renewed sense of wealth. This increase in wealth encourages them to spend more, thus contributing to the overall wellbeing of the economy.