The U.S. economy firmed up in Q2 after having slowed in Q1. Data for June show that retail sales increased for a third consecutive month, consumer confidence jumped to an eight-month high and the employment report was outstanding, which alleviated concerns about the strength of the labor market. This suggests that consumer spending—the backbone of the economy—remained rock-solid in the second quarter. Meanwhile, business activity among U.S. manufacturers was resilient in Q2: the ISM manufacturing index increased again in June, signaling that growth in the sector had gained momentum.