The survey's labor market differential, derived from data about respondents who think jobs are hard to get and those who think jobs are plentiful, was the best in 16 years. The labor market is close to full employment with the unemployment rate at just 4.3 percent.
The Case-Shiller home price index of 20 metro areas rose 5.7% in June after a similar increase in May. An shortage of homes available and strong demand are pushing up prices. Furthermore, mortgage rates remain extremely attractive and have fallen to year to dates lows in recent weeks.
As long as the stock market, job and real estate remain on track as we expect them to, consumers will continue to spend and they will drive the US growth forward for the rest of the year.
Header photo from Unsplash freestocks
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