The US-China trade war and rising geopolitical tensions with Iran aren’t phasing the average American consumer. They’re amazingly upbeat when it comes to the general economic outlook, jobs and the stock market.
Consumer confidence survey data tracked by Bespoke Investment Group shows an elevated reading for mid-2019. Sentiment is well above the historical average and has bounced back from declines in the second half of 2018.
One reason is the robust American jobs market. The US economy generated 263,000 new jobs in April, extending a run of 103 straight monthly gains. The American unemployment rate, now at 3.6%, is the lowest in 50 years.
While May has been a rough month for the stock market, thanks to rising US-China trade tensions, consumers don’t seem rattled. Data compiled by Bespoke suggests most consumers expect US stock prices to keep rising.
Such sentiment readings matter, since consumer spending drives nearly 70% of overall US gross domestic product.
While economists are worried about a possible economic slowdown in 2020 and exploding budget deficits, the US consumer continues to see sunny skies ahead.
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