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.
“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.”