Economic consumer sentiment index: Despite recent challenges, US markets and consumers are optimistic. Consumer sentiment and stock market performance are rising, raising hopes of avoiding a recession. Let’s examine the indicators that are boosting economic confidence and optimism.
Consumer Sentiment RisingIn July, the University of Michigan’s consumer sentiment index rose 13% for a second month. The increase, the highest since September 2021, shows consumer optimism. This index measures consumer expectations in personal finances, business conditions, and buying conditions.
Fortunately, the S&P 500 index is rising along with consumer sentiment. The S&P 500 has risen over 18% this year, bolstering economic recovery.
Recovering Economy,Stocks and consumer sentiment fell in 2022, prompting this optimism. Inflation and aggressive Fed rate hikes raised recession fears. The current sentiment shift suggests that the worst-case economic scenarios may not occur.
“Consumer sentiment reached levels consistent with the lows of some past recessions last summer,” said RBC Capital Markets’ head of US equity strategy Lori Calvasina. Consumer sentiment and stocks have recovered from recession-like conditions this year.”
Financial Indicators In recent weeks, positive economic data has shown the US economy‘s resilience, boosting investors’ confidence:
Labor Market Resilience June saw a 209,000-job gain, the lowest since December 2020. Job growth is steady but not record-breaking.
US annual inflation dropped to 3% from 9.1% in the same month last year. The gradual slowdown boosts hopes of reaching the Federal Reserve’s 2% inflation target.
In June, retail sales rose at a slower pace than expected despite rising inflation. The data shows a consumer base that spends consistently.
JPMorgan Chase, BlackRock, Wells Fargo, and Citigroup all beat second-quarter earnings expectations, indicating business sector health.
Tightened Market-Consumer Sentiment Correlation,Investors believe worst-case economic scenarios are less likely due to the new correlation between stock market performance and consumer sentiment. OANDA senior market analyst Ed Moya says this correlation suggests investors no longer fear the worst economic outcomes predicted last year.
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However, if job losses and declining spending power hurt consumer sentiment, economic volatility is possible. Though unlikely, a recession is a concern.
Pilots Support Teamsters,The Independent Pilots Association (IPA), which represents UPS cargo pilots, has pledged to support Teamsters if they strike next month. The IPA, representing 3,400 pilots, said they would not cross the picket line or fly for the company.
UPS faces major challenges from this announcement, as a strike could cost the US economy $7.1 billion.
Starbucks Joins BlackpinkStarbucks and Blackpink collaborated to spice up the economy. The Blackpink Strawberry Choco Cream Frappuccino, made with strawberry syrup, dark chocolate sauce, oat milk, chocolate curls, pink whipped cream, and a heart-shaped chocolate, was introduced by the popular coffee chain.
Starbucks fans in nine Asian markets, including Hong Kong, Indonesia, South Korea, and the Philippines, can also buy Blackpink-inspired tumblers and keychains.
Starbucks Asia Pacific president Emmy Kan said, “We are so thrilled to partner with one of the biggest icons of this generation.”
As markets rise and consumer sentiment rises, economic optimism rises. As always, the future is uncertain, and one event can change the course. The nation enjoys optimism while watching for potential problems
Our Reader’s Queries
What is the current index of consumer sentiment?
The US Index of Consumer Sentiment currently stands at 69.70, marking an increase from 61.30 last month and 59.80 a year ago. This represents a 13.70% rise from the previous month and a 16.56% increase from the previous year.
What is the Consumer Sentiment Index for 2023?
In December 2023, Consumer Confidence in the United States rose to 69.70 points from 61.30 points in November. Since 1952, the average Consumer Confidence in the United States has been 85.47 points. The highest recorded point was 111.40 in January 2000, and the lowest was 50.00 in June 2022.
What is a good consumer sentiment score?
A reading over 100 shows that consumers are feeling more confident about the economy. This means they’re less likely to save their money and more likely to make big purchases in the next year.
What is the CCI economic indicator?
This consumer confidence gauge predicts how much people plan to spend and save in the future by asking them about their expected finances, view on the overall economy, job outlook, and ability to save.