London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

Vaccines and stimulus boost US consumer sentiment

Vaccines and stimulus boost US consumer sentiment

American consumers are growing more confident as the light at the end of the pandemic tunnel becomes brighter.
The rollout of Covid-19 vaccines, President Joe Biden's call on states to make shots available to all adults by May 1, and the new $1.9 trillion stimulus package signed into law Thursday, create a powerful cocktail of good news to help Americans feel better about the economy.

Preliminary data collected in the University of Michigan's consumer survey showed that respondents felt much more optimistic in March.

The consumer sentiment index rose to 83 points, up from 76.8 in February. Although that's still below the level from a year ago, it was stronger than experts had predicted.

Action Economics chief economist Mike Englund called the number a "hefty bounce."

Notably, the survey was conducted before President Biden signed the stimulus bill Thursday and reflects only an expectation of more government aid.

"Consumer sentiment rose in early March to its highest level in a year due to the growing number of vaccinations as well as the widely anticipated passage of Biden's relief measures," said Richard Curtin, chief economist for the Survey of Consumers.

Even though all socioeconomic groups grew more optimistic this month, the biggest improvements were concentrated among those in the bottom third of income distribution, as well as among respondents aged 55 and older, Curtin said.

Survey respondents also upped their assessment of current economic conditions, as well as their expectations for the future, according to the data.
The new stimulus package includes direct checks to qualifying individuals with the intention to bolster spending in the months to come.

Economists have warned that inflation could pick up significantly as the economy reopens and Americans reopen their wallets.

The survey also found increased expectations for higher inflation, as well as higher mortgage and other loan rates, for the year ahead.

Rising inflation could be a sign that the subdued economy is recovering more rapidly, but if prices go up too quickly, the Federal Reserve could be forced to raise interest rates to keep the economy from overheating. This dynamic has been the bogeyman of Wall Street in the past several weeks, pushing bond yields higher and periodically weighing on stocks.
Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×