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<h2>Consumer Confidence rebounds, but… at a cost</h2>
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<p>Consumer Confidence from the Conference Board increased for the fifth consecutive month as pandemic woes continued to fade.&nbsp; This month’s report showed broad strength, with both the Present Situation and Future Expectations components climbing higher. &nbsp;Gains in the Present Situation component were driven by favorable views of the labor market. &nbsp;Over 54% of consumers view jobs as “plentiful” versus only 11% who see them as “hard to get”, one of the widest differentials on record. &nbsp;</p>
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<p>While this bodes well for consumer spending in the months ahead, it highlights that there is a shortage of labor that may lead to prolonged wage inflation. &nbsp;Additionally, concerns about inflation are being compounded by the fact that consumers’ inflation expectations have surged to a 13-year high. &nbsp;This will be a key development to watch going forward, as the longer that inflation expectations remain elevated, the greater the risk of inflationary psychology taking hold.</p>
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<div class="wp-block-image"><figure class="aligncenter size-large"><img src="https://ns2020-investech.investech.com/wp-content/uploads/2021/06/Consumer-Confidence-1.jpg" alt="" class="wp-image-8870"/></figure></div>
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<p>Also available to read in PDF format.</p>
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