US Consumer Confidence Index
According to a report provided by the US Conference Board, the US Consumer Confidence Index improved marginally in June 2017. The index stood at 118.9 in June 2017, compared to 117.6 in May. It beat the market’s expectation of 116.0.
The index reached a high of 124.9 in March 2017, but after that, it showed falls in its performance in both April and May. The fall in the index in these months showed that consumer activity had fallen in the United States (IWM). Rising political uncertainty in the economy (IVV) (QQQ) likely hampered consumption activity.
However, in June 2017, the index showed an improvement, meaning that consumers were slightly more positive about economic conditions. The Republican government’s strong efforts to push its new healthcare bill through Congress drove the market’s (SPY) sentiments.
Performance of the S&P 500 Index
The S&P 500 Index (SPY) rose 1.2% in June 2017, touching a new high of 2,453.82 on June 19, 2017. The SPDR S&P 500 ETF also rose nearly 1.3% in June 2017.
The improvement in the market index is also correlated with improvements in various economic indicators. Improvements in the political environment also supported the index’s movements.
In the next article, we’ll analyze the performance of the Eurozone ZEW Economic Sentiment Index in June 2017.