The Conference Board announced on Tuesday its U.S. consumer confidence surged 7.3 points to 127.3 in June from 120.0 in May.

Economists had expected consumer confidence to come in at 119.00.

May’s consumer confidence reading was revised up from the originally estimated 117.2.

The survey showed that the present situation index rose from 148.7 in May to 157.7 this month. Meanwhile, the expectations index increased from 100.9 last month to 107.0 in June.

“Consumer confidence increased in June and is currently at its highest level since the onset of the pandemic’s first surge in March 2020,” notes Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “Consumers’ assessment of current conditions improved again, suggesting economic growth has strengthened further in Q2. Consumers’ short-term optimism rebounded, buoyed by expectations that business conditions and their own financial prospects will continue improving in the months ahead. While short-term inflation expectations increased, this had little impact on consumers’ confidence or purchasing intentions. In fact, the proportion of consumers planning to purchase homes, automobiles, and major appliances all rose - a sign that consumer spending will continue to support economic growth in the short-term. Vacation intentions also rose, reflecting a continued increase in spending on services.”