Consumer spending and sentiment remain stagnant in June
The past several months have been positive in terms of consumer confidence and spending, as economic conditions continue to improve and individuals feel better about their own finances. However, the latest data shows that these levels have remained relatively stagnant, signaling that Americans are still somewhat hesitant about their retail spending.
According to Bloomberg, the most recent Consumer Sentiment Index from Thomson Reuters and the University of Michigan decreased from 84.1 in June to 83.9 this month. While it's not a sharp decline, it is below the five-year high of 84.7 that was seen in May, the news source explained. However, despite the drop, analysts expect the index to increase in the coming months.
"It's a slip in confidence from recent highs rather than the start of a new downward," TD Securities Strategist Gennadiy Goldberg told the source. "As we get later in the year and the economy improves, consumers will start to see better numbers and they'll notice that."
On the other hand, consumer spending remained the same in June, Gallup Economy reported. A study by the source revealed that the average amount spent daily came in at $90 last month, which is the same figure from May. It is better than the average of $86 that was spent each day in April, the source explained.
