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U.S. June Consumer Confidence Index Rises to 2-Year High (Bloomberg, 6/29/04)

Confidence in the U.S. economy rose this month to the highest level in two years, spurred by job growth and a decline in gasoline prices, a private survey found.

``Some of the concerns about Iraq and terrorism have taken a back seat to the good news on the economy and employment,'' said John Shin, an economist at Lehman Brothers Inc. in New York, before the report.

The New York-based Conference Board's consumer confidence index increased to 101.9 this month, from a revised 93.1 in May. The figure exceeded the highest estimate in a Bloomberg News survey. Assessments of both current and future conditions rose.

The percentage that saw jobs as hard to get declined to the lowest since September 2002. The economy has added 1.2 million jobs so far in 2004 and economists forecast another quarter- million were added this month, boosting incomes and providing thrust for spending and the economy. Federal Reserve policy makers meet later today and are predicted to raise their benchmark interest rate tomorrow by a quarter-point to 1.25 percent to keep inflation from accelerating.

``The economy is slowly improving and doing better, and a lot of people are out traveling -- maybe more so than they have since 9/11,'' said David Neeleman, chief executive officer at JetBlue Airways Corp., in an interview. The company is raising the number of flights between its base in New York and Florida to 71 a day from a peak last year of 55, he said.

Higher consumer confidence and an improving economy may help President George W. Bush in his re-election bid against Democratic candidate John Kerry, a Massachusetts senator.

"may"?

Posted by Orrin Judd at June 29, 2004 10:30 AM