Consumer Confidence Explodes to the Strongest Levels of the Recovery - Confirming last Week's Consumer Sentiment Report

June consumer confidence confirms last week's consumer sentiment report, that spirits -- and especially expectations -- are rising to their strongest levels of the recovery. The consumer confidence index jumped nearly 7 points to a 101.4 level that easily surpasses the Econoday high estimate for 99.0.

The report's expectations component, like that of the consumer sentiment report, is a standout, surging 8.2 points to 94.6 and reflecting significant optimism over the outlook for jobs and the outlook for income. The report's present situation component is also strongly positive, up 4.5 points to 111.6 in a gain that hints at month-over-month strength for consumer spending in June. Here, importantly, the gain reflects specific strength in the consumer's assessment of the current jobs market where sizably fewer, at 25.7 percent vs May's 27.2, describe jobs as hard to get.

This report is solid throughout including buying plans for autos which, after an absolute sales spike in May, show another major gain for June. Buying plans for homes are steady at a solid rate. Inflation expectations are very quiet at 5.1 percent which is low for this report.

The Federal Reserve has repeatedly cited consumer confidence readings as strong positives for the economic outlook. Confidence readings, boosted most by low unemployment, first broke out higher at the beginning of the year well in advance of what eventually would become a spring rise for retail sales.