In June, the US consumer confidence index showed a slight decline to 100.4 from 101.3 in May, according to new data from The Conference Board. This change was in line with economists’ expectations and reflects ongoing concerns about the future, despite Americans remaining upbeat about the strength of the labor market.
Consumer sentiment is closely monitored as it drives nearly 70% of US economic activity, particularly in the months leading up to the presidential election. While this index put more emphasis on employment and labor market conditions than other key indicators like the University of Michigan’s consumer sentiment index, which focuses more on household finances and inflation concerns, both are important indicators of how Americans view their current and future economic outlooks.
The preliminary reading of the University of Michigan index for June already showed sentiment levels at a seven-month low, pointing to ongoing concerns among American consumers. As the year progresses, monitoring changes in consumer confidence will be crucial to gaining insights into how shifting labor market or broader economic conditions may impact consumer spending and overall economic activity in the US.
