In the world of statistics, there are some data that is important at the moment and others that are a lagging indicator. The lagging indicator means it will effect the economy, just right not this month. Most people quickly figure it out, because they hear about higher prices to come and then the prices are higher. What to do about as a consumer and a business?

In an article by Lucia Mutikani of Reuters, US consumer confidence fell in June as households worried about job availability against the backdrop of rising uncertainty because of the tariffs.

The ebb in confidence was reported by the Conference Board was across all age groups, all income groups, all political spectrum.

The share of consumers viewing jobs as plentiful was the smallest since March 2021, which aligns with the more people collecting unemployment checks and a moderation in job growth.

Economists are expecting unemployment to rise from 4.2% to 4.3%.

Federal Reserve Chair Jerome Powell told lawmakers it needs more time to decide how much tariffs are affecting the economy, so it left the range between 4.25% and 4.5% where it has been since December.

Consumer confidence is particularly important to the US economy because about 60% of the economy is based on consumers spending their money.

Linking to dividend paying stocks, everyone sees the consumer confidence through various lens. If you have a job, you ask all things being equal will you be able to keep it. If not, you begin to try to increase savings. This is good at an individual level, but if everyone does it spending slows and the economy retracts. What is good for individuals is also good for businesses, where is demand the highest? how are receivables -does it take more time to collect? how are accounts payable – are companies stretching the date they pay bills? ideally for profitable companies those numbers do not change, but if they do, then it is time to look at alternatives.

There are more questions than answers, till the next time – to raising questions.