The IBD/TIPP Economic Optimism Index, a leading measure of consumer confidence, rebounded after a slight dip in May. The index rose 3.7 percent, recapturing the pandemic high of 56.4, which it had set in April, before falling back in May.
The index's reading of 56.4 in June keeps it in positive territory for the sixth consecutive month. It also ties April's data for the highest reading since February 2020 (59.8), prior to the pandemic slump.
The confidence in June is 5.7% below the pre-pandemic level of Feb 2020.
The IBD/TIPP Economic Optimism Index is the first monthly measure of consumer confidence. It accurately predicts monthly changes in sentiment in other well-known surveys conducted by The Conference Board and the University of Michigan.
Consumer spending drives two-thirds of the economy. Optimistic consumers spend money on automobiles, home improvements, new homes, and other large-ticket items.
The TIPP Economic Optimism Index is the most well-known of our TIPP indexes. Investor's Business Daily publishes the IBD/TIPP Economic Optimism Index every month.
Multiple factors are helping to keep the index and its components in the positive zone.