Consumer Sentiment Rises for First Time in 2024 Amid Easing Inflation and Trade Tensions
Consumer sentiment in June increased for the first time this year, driven by low inflation and clearer tariff strategies, despite ongoing economic pessimism among some Americans.
Overview
- Consumer sentiment rose 16% to 60.5 in June, marking the first increase in 2024, as inflation fears eased significantly.
- Despite the rise, consumer sentiment remains 20% lower than in December 2024, reflecting ongoing economic concerns.
- Political affiliation influences consumer confidence, with Republicans generally more optimistic about the economy than Democrats amid the trade war.
- The rise in sentiment is attributed to low inflation and improved trade conditions, although U.S. duties remain high historically.
- Consumer sentiment improved across demographics, with both party supporters and independents showing increased confidence in the economy.
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Analysis
Emphasizes consumer sentiment's decline despite recent improvements and political divisions affecting confidence.
Consumer sentiment remains 20% lower than in December 2024.
Americans are pessimistic about the economy's future due to President Trump's trade war.
Despite remaining elevated compared to historical levels, U.S. duties have not exacerbated overall inflation.
Consumer confidence is divided along political lines, with Republicans expressing more optimism about the economy under Trump compared to Democrats.
The Conference Board's consumer confidence index increased after five consecutive declines due to concerns about tariffs.
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"…Consumer sentiment increased in June for the first time in six months, the latest sign that Americans’ views of the economy have improved as inflation has stayed tame and the Trump administration has reached a truce in its trade fight with China."
Associated Press·1M·FAQ
The rise in consumer sentiment was driven by low inflation and clearer tariff strategies, despite ongoing trade tensions and economic pessimism.
Political affiliation plays a significant role, with Republicans generally being more optimistic about the economy than Democrats during trade tensions.
Consumer sentiment remains 20% lower than in December 2023, indicating ongoing economic concerns despite recent improvements.
History
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