Consumer Confidence Preview

The Conference Board will release the June consumer confidence index Tuesday at 10 a.m. ET. Consensus estimates are for consumer confidence to weaken somewhat to 99.6 in July, following last month's strong showing. according to Bloomberg News. The estimates range from 97 to 102. Confidence climbed to 101.4 last month after a May reading of 94.6. Overall, consumer confidence has risen nearly 18 percent over the past year. While recent job growth has added to the confidence levels, the lack of wage growth has dampened improving consumer sentiment. A Confidence Board survey of consumers released last month indicated that few people looked for job gains to increase pay hikes. Average hourly incomes have risen 2 percent over the past year, barely nudging out core CPI gains. Higher confidence readings usually are a leading indicator for increased consumer spending, a key driver of economic growth. Consumer spending accounts for roughly two-thirds of all U.S. economic activity.A similar preliminary consumer sentiment index from the University of Michigan was released earlier this month, showing a decline in sentiment from June to July. In front of the release, S&P 500 futures are showing gains on 0.4 percent.