Economic data released on Tuesday showed a positive report with New Home Sales and a negative with Consumer Confidence. Analysts at Wells Fargo argue the initial relief that followed the lifting of lockdowns has been replaced by a resigned acceptance of a new way of life, but recent progress at containment may signal a turn.
Key Quotes:
“Consumer Confidence is lower now than it was in April and May at the height of the lockdowns. Still confidence is not as battered as it typically might be during a recession.”
“What is particularly disconcerting is that the expectations component at 85.2 is now at a fresh period low.”
“While there is not a long enough time series to make a bullet-proof case, it appears that confidence lags the progress with the virus, at least to some extent. If recent progress at containing the virus holds, there is a reasonable case for confidence to snap back.”
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