US economic optimism improved in July 2026, with RealClearMarkets/TIPP Economic Optimism Index rising to 45.5 from 42.5
07/05/2026 12:00 pm EST
AJ Economy Trend - US U due to continuously weakening labor market and slowed down non-farm payrolls
U.S. economic optimism improved in July 2026, with the RealClearMarkets/TIPP Economic Optimism Index rising to 45.5 from 42.5 in May and slightly beating expectations. The improvement was driven by stronger views on the six-month economic outlook, better expectations for personal finances, and increased confidence in federal economic policies. The Personal Financial Outlook remained the strongest component at 52.2, staying above the neutral 50 level, while the broader index and other components remained below 50, indicating that overall sentiment was still cautious despite the monthly improvement.
US unemployment rate holding at 4.2% with non farm payrolls rose by 57,000. April and May payrolls revised down by combined 74,000
07/05/2026 12:00 pm EST
AJ Economy Trend - US Down due to continuously weakening labor market and slowed down non-farm payrolls
The U.S. labor market showed little change in June, with nonfarm payrolls rising by 57,000 and the unemployment rate holding at 4.2%. Job gains were concentrated in professional and business services, social assistance, and health care, while leisure and hospitality lost 61,000 jobs due to weaker-than-usual seasonal hiring. Labor force participation declined to 61.5%, and the employment-population ratio edged down to 59.0%, suggesting some softening in labor market conditions. Long-term unemployment remained elevated at 1.9 million, while wage growth stayed moderate, with average hourly earnings rising 0.3% for the month and 3.5% from a year earlier. April and May payrolls were revised down by a combined 74,000, indicating that recent hiring momentum was weaker than previously reported.