The Associated Press/Ipsos CASH Index

Washington, DC, (AP)- Consumer confidence grew stronger over the past month as Americans' attitudes about the economy's future prospects brightened. By Jeannine Aversa Associated Press Writer The AP-Ipsos consumer confidence index climbed to 91.3 in June, up from a reading of 87.4 in May. The rise in consumer confidence comes as the economy is on a solid growth track and the job market has made gains. The latest snapshot of consumer sentiment also shows that Americans' view of the economy is considerably more positive as compared with a year ago, when the consumer confidence index stood at 86.8. The AP-Ipsos confidence index is benchmarked to a 100 reading on January 2002, the month the index was started by Ipsos. "The job situation has improved immensely and the stock market has firmed up a bit," said economist Ken Mayland, president of ClearView Economics, explaining the rise in consumer confidence. Consumer spending accounts for roughly two-thirds of all economic activity in this country. Economists predict consumers will keep their pocketbooks and wallets sufficiently open in the months ahead to help support the economy. A measure of consumers' feeling about economic expectations over the next six months, including conditions in the local areas where they live or work, registered the sharpest over-the-month increase of four subindexes. That expectations gauge increased to 94.1 in June. That was up from 87.9 in May and exceeded the reading of 72 posted for June last year. A subindex tracking consumers' sentiment about the jobs climate rose to 104.4 in June, up from 102.7 the previous month. Another gauge looking at consumers' feelings about current economic conditions, however, dipped to 95.6 in June, from 97.9 in May. Economists suggested that might reflect the pinch of higher prices for energy and other goods. A measure of consumers' attitudes about making a purchase, saving and other investment decisions also declined in June to 94.7 from 97.4 in the previous month, which economists said may again be related to higher energy prices as well as consumers' feelings about higher mortgage rates and other borrowing costs. The Associated Press Poll is conducted by Ipsos-Public Affairs. Between June 7-9, 2004, the AP/Ipsos poll interviewed a representative sample of 1,003 adults nationwide, including 788 registered voters. The margin of error is +/- 3.1 for all adults, +/- 3.5 for registered voters. Margin of error for subgroups may be higher. [+] click to enlarge [+] click to enlarge [+] click to enlarge The AP/Ipsos CASH Index is designed to provide a single, handy number that summarizes movement across an array of consumer attitudes, including current assessments and near-term expectations about the economy and personal finances, job security, confidence in the ability to save and invest for the future, and comfort level with making major purchases and other household purchases. Ipsos CASH Index Surveys of consumers are conducted by Ipsos Public Affairs, the Washington, D.C.-based division of Ipsos, a leading global survey-based market research group. The Ipsos Consumer Attitudes and Spending by Household (CASH) Index polls are conducted the first and third week of every month, as part of Ipsos-Public Affairs weekly omnibus polling service. The Ipsos CASH Index, started in January 2002, is a bimonthly national survey of consumer attitudes on the current and future state of the local economy, personal financial situation and spending, saving and confidence to invest.

For more information about the Ipsos CASH Index or to receive this report on the first and third week of every month, please e-mail [email protected], or contact Brian Scanlon at 202.463.2146. For more information on this press release, please contact: Thomas Riehle President, Ipsos Public Affairs Washington, D.C. 202.463.7300 About Ipsos Public Affairs Ipsos Public Affairs, headquartered in Washington D.C., is a non-partisan, objective, survey-based research company made up of campaign and political polling veterans as well as seasoned research professionals. The company conducts strategic research initiatives for a diverse number of American and international organizations, based not only on public opinion research but often elite stakeholder, corporate, and media opinion research. It has offices in New York City, Chicago, San Ramon (CA), and Washington, with affiliates around the world. Ipsos Public Affairs conducts national and international public opinion polling on behalf of The Associated Press, the world's oldest and largest news organization, and conducts the young voters poll for Newsweek.com. Ipsos Public Affairs is an Ipsos company, a leading global survey-based market research group. To learn more, visit: www.ipsos-na.com/news/pa About Ipsos Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and reactions of consumers, customers, and citizens around the world. Member companies assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe. Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting and modeling and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999. In 2003, Ipsos generated global revenues of $644.2 million U.S. To learn more, visit: www.ipsos.com Ipsos is listed on the Euronext Paris Premier Marchй, and is part of the SBF 120 and Next Prime Indices as well as eligible to the Deferred Settlement System (SRD). Euroclear code 7329, Reuters ISOS.LN, Bloomberg IPS FP