Consumer optimism rises
U.S. consumer sentiment is rebounding for the first time in six months, though economic concerns linger, according to preliminary data from the University of Michigan.
Consumer sentiment rose 16% in June from May but is still 20% below December 2024's post-election surge, the report said. All five of the index's components — age, income, wealth, political party and geographic region — increased as consumers said they felt less pressure due to President Donald Trump's pause on most tariffs.
"Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed," survey director Joanne Hsu said in a statement. "However, consumers still perceive wide-ranging downside risks to the economy. Their views of business conditions, personal finances, buying conditions for big ticket items, labor markets, and stock markets all remain well below six months ago in December 2024."
Even so, Hsu pointed to fears that the U.S. trade policy would push inflation higher over the next year. The university releases its final report June 27.
The National Association of Home Builders and Wells Fargo are set to release their builder confidence survey Tuesday. May builder sentiment was at the lowest level since late 2023.
Homebuilder hiring advances
Homebuilders are adding jobs, even as the larger residential construction sector is losing workers.
Residential building firms hired 3,600 workers in May, according to an Associated General Contractors of America analysis of federal data. But overall residential construction employment struggled due to a decline of 11,000 positions for specialty trade contractors, such as roofers and plumbers.
Construction employment, including residential and nonresidential jobs, totaled a seasonally adjusted 8.314 million, an increase of 4,000 from April, the data shows.
Firms could be adding even more jobs, if not for "constant changes in tariffs and other policies that are affecting the cost and demand for construction," said Ken Simonson, the association’s chief economist, in a statement.
Credit card debt prompts deceit
Credit card debt, something that can affect prospective homeowners' chances of getting approved for a mortgage or the best rates, is causing consumers to be less than transparent, according to a recent study from LendingTree.
Almost 40% of the 900 respondents have lied about their debt to their spouses and other family members, with nearly 50% of respondents dismissing or disguising the debt because they're embarrassed, the survey suggests.
Managing debt is critical for first-time homebuyers because creditworthiness determines whether lenders approve mortgages. Some of the best ways borrowers can raise credit scores are to pay bills on time and spend no more than 30% of the credit limit on each card, experts say.