After a Few Down Months, Economic Confidence Brightens

The RealClearMarkets/TIPP Economic Optimism Index, a leading gauge of consumer sentiment, rebounded sharply by 9.1% in July to 44.2. Since September 2021, the index has remained in negative territory for 35 consecutive months. July’s reading of 44.2 is 10.2% lower than the historical average of 49.2.

Optimism among investors gained 15.3% from 46.5 in June to 53.6 in July, while it increased by 4.5% among non-investors, from 37.7 in June to 39.4 in July.

The RCM/TIPP Economic Optimism Index has established a strong track record of foreshadowing the confidence indicators issued later each month by the University of Michigan and The Conference Board. From February 2001 to October 2023, TIPP released this index monthly in collaboration with its former sponsor and media partner, Investor's Business Daily.
RCM/TIPP surveyed 1,389 adults from June 26 to June 28 for the July index. The online survey utilized TIPP's network of panels to obtain the sample.

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