Today's Scoop:

Hey friends, hope you had a good weekend. Don’t miss the last Weekly Scoop or our Circular Economy Explained from the weekend.

Here’s what you need to know today…

1. Consumers are losing optimism.

2. Household debt is on the rise.

3. US manufacturing business slumped this month.

S&P 500: 4,136.28
1Mo: -1% | 1Yr: +3% | 5Yr: +53%

The market inched higher today but hasn't done much in the past week.

Consumers are losing optimism. The University of Michigan's consumer survey showed sentiment slumped to a six-month low this month as people worried about inflation and government default. People expect living costs to rise by 4.5% over the next year and for inflation to stay high at 3.2% in 5 years. Inflation expectations are important because they can influence behavior that becomes self-fulfilling.

Household debt is rising, but people are still managing their payments. The New York Federal Reserve’s consumer survey reported total household debt rose to over $17 trillion in March. People have still been managing the debt well. Home foreclosures are still low, and delinquent payment rates are at or below pre-pandemic levels.

Manufacturing slumped this month. The Federal Reserve Bank of New York’s Empire State Manufacturing Survey index plunged in May nearly nine times more than economists expected. New orders and shipments fell as economic activity slowed.

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• Peloton recalls millions of bikes over safety concerns

• Tesla deals with braking problems in Chinese vehicles

• Shake Shack battles an activist investor [🤓]

• McDonald’s faces proxy pressure from environmental investors [🤓]

• Eyenovia’s pupil spray earns regulatory approval

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