Despite June’s stellar report of 127.3, consumer confidence has not quite reached its pre-pandemic level. In February 2020, the index was at 132.6. However, June marks a significant turnaround from the April 2020 level of 85.7, a six-year low at the time. April’s dismal report also snapped a 44-month consecutive string of 100-plus levels for the index.

The spike in consumer confidence has benefited from a strong recovery in the labor market. In February 2020, the national unemployment rate was at 3.5%, a 50-year low. Two months later, the rate soared to 14.8% as 22.3 million Americans suddenly lost their jobs. The unemployment rate currently stands at 5.9% while 15.6 million jobs have been added over the past 14 months.

The labor market will play a critical role in maintaining consumer confidence. The economy has been adding jobs but not at the speed Wall Street has been hoping for. In April, the unemployment rate jumped from 6%…

Read more…

Share.

Comments are closed.