US consumer confidence picks up in early June as unemployment glooms linger



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US consumer confidence picks up in early June as unemployment glooms linger

On Friday, a survey data released from the University of Michigan had revealed a sign of lustre for the ailing US economy, as US consumer sentiment had ticked up on early June followed by a reopening of the businesses alongside a surprise gain of 2.5 million in non-farm payroll last month, though the hiring spree could not outweigh frets of a lingering recession alongside a resurgence of the pandemic outbreak.

Besides, the US consumer confidence survey report released on Friday by the University of Michigan, had been well in alignment with the analysts’ expectation, as a deluge of dismal data including a record unemployment rate had kept a lid on the readings.

Aside from that, according to the U. of Mich. (University of Michigan) survey report for early June, the U. of Mich. Consumer Sentiment Index had witnessed a rise to 78.9 in early June, compared to a reading of 72.3 in May, while the U.

of Mich. survey report said, “Few consumers anticipate the reestablishment of favourable economic conditions anytime soon. Two-thirds of consumers in the survey expected ‘bad times financially’ during the year ahead, while half anticipated a ‘renewed downturn.

’”

More than 20 million lay offs in non-essential sector likely to slow down the recovery

In tandem, although the U. of Mich. US Consumer Confidence Index unveiled a glimpse of hope for the US economy a couple of days after the US Fed Chair Powell had signalled dour economic projection for the US economy in a medium- to longer-term outlook, an employment gap of nearly 20 million on the non-essential sectors remained as a long slog amid a tepid inflation alongside consumer spending.

Apart from that, as the Fed Chair Powell’s remarks seemed to have taken a heavier toll on the survey participants, the University of Michigan five-year inflation expectation had dropped to 2.6 per cent in early June, compared to a reading of 2.7 per cent a month earlier, suggesting a persistent lag in US consumer spending, the centrepiece of US economy accountable for roughly two-thirds of entire US economic activity.