US Economic Data: Consumer Sentiment, Construction Spending, and Inflation

Consumer Sentiment and Economic Indicators

• 📊 The final read on University of Michigan consumer sentiment shows a slight decrease from 61.8 to 61.7.
• 💡 However, the current conditions index saw a significant jump from 66.8 to 68.0, marking the second-best reading of the year.
• 📉 The expectations index decreased from 58.6 to 57.7, reaching its weakest level since March.

Manufacturing and Employment Data

• 🏭 The ISM Manufacturing Index came in at 48.0, indicating contraction for the fifth consecutive month and the lowest number since October of last year.
• ⚠️ New orders within the manufacturing sector also declined to 47.1, remaining in contraction territory.
• 💼 The employment component of the ISM report fell to 43.4, significantly below expectations.

Construction Spending and Inflation Outlook

• 🏗️ Construction spending in June decreased by 0.4%, the largest drop since March.
• 💰 The prices paid index within manufacturing declined to 64.8, the lowest since February, which is seen as positive news.
• 📈 The one-year inflation expectation from the University of Michigan rose slightly to 4.5% from 4.4%.
• 📉 Conversely, the 5-to-10-year inflation expectation dropped from 3.6% to 3.4%, reaching its second-lowest reading of the year.