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The influential American consumer is happy which is good news for us all

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.

Content Consumers

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.

Jobs Galore

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.

Stock Market

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.

Takeaway

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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This material is from Interactive Advisors Asset Management and is being posted with Interactive Advisor Asset Management’s permission. The views expressed in this material are solely those of the author and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Xavier Brenner has covered global market, business and economic trends since 2013 for Interactive Advisors, a robo-advisor offering actively and passively managed portfolios and a division of the Interactive Brokers Group.

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