US Consumer Report Card for Second Quarter 2024

This report presents the Western Asset US Consumer Report Card for the second quarter of 2024, which evaluates the relative strength of the US consumer using seven key economic indicators. The methodology involves ranking these indicators against historical data dating back to 1990 and calculating a weighted average score for each month. The report assigns letter grades based on the scores, with the overall consumer score rated as B, indicating solid performance above the historical average of C+. The report details trends in employment, consumer spending, real income growth, household balance sheets, consumer sentiment, and credit performance. It highlights that while job growth remains strong, the unemployment rate has increased slightly. Consumer spending momentum is stable, but real income growth is declining. The report also notes improvements in household balance sheets and discusses the implications for investment strategies in consumer credit sectors. Overall, the consumer landscape is described as resilient despite some cooling trends.