Strong U.S. economic data continues to pour in this week, pushing consumer confidence in June to its highest level in the last 18 months. This has led economists to pull away from concerns of an impending recession in the coming months.
U.S. home sales rose in May, as did April home prices. May’s retail sales also beat consensus estimates, while the jobs report for the same month beat expectations, with 339,000 new jobs being added to the U.S. economy. This influx of positive data has also led to a rise in air travel, with more U.S. travelers going on vacation than in 2019 in seven of the last 10 days.
Consumers are becoming more optimistic regarding the likelihood of an incoming U.S. recession. 69.3% of consumers in June said a recession in the next 12 months is “somewhat” or “very likely,” compared to 72.2% in May.
Jefferies US economist Thomas Simons wrote in a note to investors that, “consumer attitudes remain resilient.” He explained that while there are still economic concerns plaguing the U.S., consumers are becoming less frightened of the prospect of an impending recession.