CTA: Consumer Tech Spending Jumped In June

Consumer confidence toward technology spending rebounded in June, while sentiment toward the overall economy dropped last month, according to the Consumer Technology Association (CTA) indexes.

The CTA Index of Consumer Technology Expectations (ICTE), which measures consumer expectations about technology spending, jumped 10 points in June to reach 87.5, in line with seasonal trends and only 0.3 points below June of 2015.

“Technology spending confidence improved significantly in June and returned to seasonal levels after last month’s deviation,” said Shawn DuBravac, chief economist, Consumer Technology Association. “If technology sentiment is maintained, this month’s rebound bodes well and suggests strength for the second half of the year. Additionally, as a share of total consumer spending, technology has been inching higher over the last six months, a sign that consumers are allocating an increasing share of dollars towards technology.”

The CTA Index of Consumer Expectations (ICE), which measures consumer sentiment about the U.S. economy as a whole, dropped nine points in June to 171.3.

“The drop in sentiment toward the overall economy is likely due to higher gas prices over the last month and increased global uncertainty amidst the Brexit vote in the United Kingdom,” added DuBravac. “Equity markets slid and uncertainty rose, putting downward pressure on sentiment.”