US consumer sentiment eased in June as consumers became less optimistic on the economy and income growth, according to figures released last week by the Conference Board.

The report shows that while Americans remain optimistic about the current state of the economy amid abundant job creation and the prospects of lower taxes, there is less confidence that gains will remain robust. Some 18.8 per cent of respondents said they expected their incomes to rise in the next six months, the smallest percentage since April 2017. As a result, purchase plans for motor vehicles and major appliances settled back.

In the meantime, the average house price in the UK topped £215,000 for the first time but annual growth in property values has slowed to a five-year low, data from the Nationwide Building Society showed last week. Across the UK, the typical house price in June stood at a new record high of £215,444, up 0.5 per cent month on month after falling 0.2 per cent in May, Nationwide said. House prices grew by two per cent year-on-year in June, following May’s 2.4 per cent rise. This was the weakest growth since 2013. Nonetheless, the rate of increase was faster than the 1.7 per cent economists had expected.

Finally, late last week rating agency S&P raised Greece’s credit ratings by one notch to ‘B’, citing improvements in the finances and fiscal outlook for the debt-laden European nation. The ratings upgrade underpinned sentiment towards a bond market that has benefited in recent weeks from expectations that Greece will exit its bailout programme this year. “Certainly Greece has made a great deal of progress recently and risks are far lower,” Jennifer McKeown, chief European economist at Capital Economics said. “Given how much its debt costs have been pushed down, a ratings upgrade probably makes sense.”

This report was compiled by Bank of Valletta for general information purposes only.