With the firm’s Jitters Index improving significantly during the first part of month, CNW Research is expecting subprime vehicle financing approvals to climb both month-over-month and year-over-year in June.

According to its June Retail Automotive Summary, CNW is seeing this month’s subprime approvals rise by 2.23 percent above the same period last year. The firm also is noticing that approvals for consumers with damaged credit history is up by 2.03 percent in June versus the previous month.

Adding to the positive trends for the auto financing sector is CNW’s Jitters Index producing one of the largest declines in recent months.

CNW president Art Spinella explained the Jitter Index — a measurement of home-centric issues among key-market consumers — saw a dramatic plunge in the opening weeks of June. Compared to May, the index fell more than 3 percent – the largest month over month decline in more than two years.

On a year-over-year basis, the index declined by 4.4 percent — a near record for annual declines, according to CNW.

“Consumers are picking up the pace when it comes to consideration of making a new-vehicle purchase,” Spinella said.

“While concerns about gasoline prices and child’s education saw increases versus year ago, the other major issues including food prices all registered declines,” he continued. “That doesn’t mean consumers are necessarily thrilled with the current state of the economy as it impacts them, however.”

The overall Jitters Index reading came in at 7.37, which is still higher than the level seen during depths of the recession. The latest reading is also nearly double the January 2007 figure of 3.84.