Jul 08, 2013 Philip Burgess
Although consumer confidence dipped slightly to begin June, it rebounded by the end of the month to near the six-year high set in May.
As a result of heightened confidence in the economy, consumers could begin to spend and borrow more. That being said, short term lenders might want to prepare for increased demand for loans.
The Thomson Reuters/University of Michigan Index of Consumer Sentiment hit 84.1 in June, down slightly from the previous month, but higher than the preliminary reading of 82.7.
Americans felt better about the future as well, with the Index of Consumer Expectation rising from 75.8 in May to 77.8.
"Consumer sentiment seems to be holding up fairly well despite some of the more recent turmoil we've seen in the market," Sean Incremona, senior economist at 4Cast Inc, told Bloomberg. "Equity prices are still pretty solid, the housing market's recovering and the job market has looked better over the course of the last several months."
With heightened consumer sentiment levels already leading to more spending in May, lenders across the country would be wise to prepare for additional borrowing activity.