The University of Michigan Consumer Confidence Index for June in the United States has been released, with an initial value of 60.5. This is not only significantly higher than the market expectation of 53.5 but also a noticeable rebound from last month's 52.2. In simple terms, consumers feel much better about the economy.
In the past few months, this index had been hovering at a low level, and everyone was quite pessimistic about the economic outlook. Now that it has suddenly jumped up, it indicates that many people are starting to worry less about employment, income, or inflation and are willing to spend and take risks with their spending.
This data could also influence the Federal Reserve's upcoming actions. If confidence has returned, along with inflation not dropping too quickly, the hope for an interest rate cut in September might need to be questioned.
In short, this is "unexpectedly good news," but it may not necessarily be favorable for the stock market—after all, the expectation for rate cuts might be pushed back.
