Consumer confidence in the United States is at its highest level in 16 months. Rising housing prices

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Washington, DC: US ​​consumer confidence in June was at its highest level in more than a year, with rising job market optimism and economic recovery offsetting growing inflation concerns.

This week’s Conference Board survey found stable demand for industrial products such as automobiles and consumer electronics.

Consumers are also inclined to buy homes, indicating that home prices continue to rise rapidly as supply is delayed. This could limit the real estate market’s contribution to GDP growth this quarter, but economists don’t believe there is another real estate bubble. They say the root cause is a mismatch between supply and demand, not the bad lending practices that caused the 2008 global financial crisis.

“Consumers often get better after being bedridden at home for more than a year,” said Oren Crackin, chief US economist at Oxford Economics in New York City. As Reuters quoted, “In the future, low COVID infections, the recovery in employment and increased savings will increase confidence and encourage consumers to spend at a rapid pace during the summer.”

Surveys based on consumer ratings of current business and labor market conditions increased their current status measures from 148.7 last month to 157.7. Expectations based on the short-term outlook for consumer income, business and labor market conditions increased from 100.9 to 107.0.

Disparities in the labor market, according to a Conference Board survey, were derived from data on respondents’ opinions about whether jobs are plentiful or hard to find, rising to 43.5 in June, the highest level. high since 20005. It fell from 36.9 during the month. .

“If consumers are right, that could point to a million nonfarm wages in Friday’s jobs report,” said Chris Lupky, chief economist at FWD BONDS in New York City, according to Reuters. “.

However, as job growth picks up, a shortage of ambitious workers, mainly condemning generous unemployment benefits, is hampering companies’ efforts to expand employment.

Economists are forecasting a further double-digit increase in consumer spending this quarter, which is expected to grow the economy at an annual rate of around 10%. The gross domestic product grew at a pace of 6.4% in the first quarter.

Consumer confidence in the United States is at its highest level in 16 months. Rising housing prices

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