US Economic Optimism Index Rises More than Expected

The RealClearMarkets/TIPP Economic Optimism Index rose to 45.5 in July 2026 from 42.5 in May, beating market expectations of 45. The Six-Month Economic Outlook, which measures how consumers perceive the economy’s prospects in the next six months, increased to 42.1 from 37.1. Also, the Personal Financial Outlook, a measure of how Americans feel about their own finances in the next six months, rose to 52.2 from 50.1, remaining the only component anchored at the 50 line. Confidence in Federal Economic Policies, a measure of views on the effectiveness of government economic policies, rose to 42.1 from 40.2

The RealClearMarkets/TIPP Economic Optimism Index edged down to 42.5 in June 2026 from 42.6 in May, falling short of expectations for a rise to 44.5 and marking a third consecutive month near April’s lows. The reading suggests consumer sentiment remains stuck at subdued levels rather than showing signs of recovery. The index has now remained below the neutral 50 threshold for ten straight months, indicating persistent pessimism among Americans. The Six-Month Economic Outlook component fell 1.9% to 37.1, its weakest level since June 2024, reflecting growing concerns about the economy’s near-term prospects. Meanwhile, the Personal Financial Outlook slipped marginally to 50.1 from 50.3, remaining the only component close to neutral territory. In contrast, confidence in Federal Economic Policies improved slightly, rising to 40.2 from 39.8.

The RealClearMarkets/TIPP Economic Optimism Index eased further to 42.6 in May 2026, the lowest level since June 2024, down from 42.8 in April , though above the expected 42. The index has now remained below the neutral 50 mark for nine consecutive months, indicating sustained pessimism. The Six-Month Economic Outlook, which measures consumers’ views on the economy’s prospects over the next six months, fell 1.8% from 38.5 in April to 37.8 in May, its lowest level since June 2024. The Personal Financial Outlook, which tracks Americans’ expectations for their own finances over the next six months, was broadly unchanged, edging up 0.2% from 50.2 to 50.3, remaining just above neutral. Confidence in Federal Economic Policies, which gauges views on the effectiveness of government economic policy, was unchanged at 39.8 from April.