Washington, DC: US consumer confidence in June was at its highest level for more than a year, as rising labor market optimism and economic resumption offset rising inflation concerns.
This week’s Conference Board survey highlighted stable demand for industrial products such as automobiles and consumer electronics.
Consumers are also prone to buying homes, indicating that home prices continue to rise rapidly as supply is delayed. This could limit the housing market’s contribution to GDP growth this quarter, but economists do not believe there is another housing bubble. They say that the main cause is a mismatch between supply and demand, not the poor lending practices that caused the global financial crisis of 2008.
“Consumers often get better after being bedridden at home for more than a year,” said Oren Crackin, chief US economist at Oxford Economics in New York. As Reuters quoted, “looking ahead, low COVID infections, job recovery and increased savings will increase confidence and encourage consumers to spend at a rapid pace during the summer.”
Surveys based on consumer assessments of current business and labor market conditions have increased their current status measurements from 148.7 last month to 157.7. Expectations based on short-term outlooks for consumer income, business and labor market conditions rose from 100.9 to 107.0.
Labor market disparities, according to a The Conference Board survey, were derived from data on respondents’ views on whether jobs are abundant or difficult to find, jumping to 43.5 in June, the highest level since 2000, 5 It rose from 36.9 in the month.
“If consumers are right, this could indicate one million non-farm payrolls in Friday’s employment report,” said Chris Lupky, chief economist at FWD BONDS in New York, according to Reuters. “.
However, while employment growth is recovering, a shortage of ambitious workers, primarily condemning generous unemployment benefits, is hampering companies’ efforts to expand employment.
Economists forecast a further double-digit increase in consumer spending this quarter, which is expected to grow the economy at an annual rate of about 10%. Gross domestic product expanded at a pace of 6.4% in the first quarter.
Consumer confidence in the United States is at its highest level in 16 months.Soaring house prices
Source link Consumer confidence in the United States is at its highest level in 16 months.Soaring house prices