US Consumer Confidence: Confidence is shaken, but expectations are not – Wells Fargo

Matías Salord FXStreet

Data released on Tuesday showed that Consumer Confidence rebounded in June. According to analysts at Wells Fargo, the index surprised to the upside but the better-than-expected outturn only partially retraces recent steep declines. They point out expectations rose nearly to pre-crisis levels, but recent virus flare-up is a risk.

Key Quotes:

“The initial estimate of consumer confidence for June came in at 98.1 which was considerably better than the consensus estimate of 91.5, but still well short of the pre-pandemic peak of 132.6.”

“The forward-looking expectations index rose back up above 100 to 106.0. The current situation may be bleak, but the expectations is not meaningfully off from the pre-recession peak of 108.1 and is actually above the 100.6 average for all of 2019.”

“The much better-than-expected jobs report for May perhaps lifted the outlook for the job market.”

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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