On Tuesday, the New York City-based Conference Board said that the US consumer confidence had perked up in June following the reopening of businesses across a number of US states, bolstering view that the worst of pandemic-led economic slump might be over.
On top of that, the survey report on US consumer confidence revealed earlier on the day came forth days after the US economy had witnessed a sharp rise in hiring alongside US consumer spending in May, though the one-time $1,200 relief bill from the Trump Administration for every American had played a pivotal part on May’s consumer spending.
However, in what could be seen as further encouraging signs for a rebounding US economy, last week’s data had also unfurled a spike in manufacturing and housing market activities.
US economy enters an important new phase too sooner than expected, says Fed’s Powell
Aside from that, while optimists were feathering over a raft of fairly upbeat economic data over the recent past, in remarks prepared for a Congressional hearing on Tuesday seen by a press agency reporter, the US Central Bank chief was quoted saying that the economic outlook had been “extraordinarily uncertain” and a road towards recovery would entirely depend on the United States’ “success in containing the virus”.
Though the Fed Chair Powell had acknowledged the rebound in economic activities on May and June following an ease of lockdown on Monday adding, “The economy had entered an important new phase and (had) done so sooner than expected.
” Concomitantly, while the Conference Board survey on US Consumer Confidence for June had revealed an uptick to 98.1 from an earlier reading of 85.9 in May, beating an analysts’ forecast of a figure of 91.8, addressing to a long load to economic recovery, a chief economist at MUFG in NY, Chris Rupkey said after the release of US Consumer Confidence data for June, “The long road to normalcy is miles and miles away and the journey is a hazardous one as already a second wave of the pandemic virus has made some states backtrack on their reopening plans.
” Nevertheless, despite the robust gains of May and June, still the US consumer confidence index has been 34.1 points below from its pre-pandemic level.