27 June 2023
Consumer Confidence rebounded significantly in June, reaching its highest level since January 2022, according to The Conference Board. However, despite the positive headline print, there are negative aspects to consider. Consumer inflation expectations for the next 12 months dropped to their lowest since December 2020, indicating concerns about rising prices. Additionally, buying plans for cars, homes, and major appliances slowed, possibly due to higher borrowing costs. While fewer consumers expect a recession in the next 12 months compared to May, concerns remain. The report poses a question about whether lower inflation expectations are sufficient for the Federal Reserve to maintain its pause.