Main Topic: U.S. consumer confidence increases to a two-year high in July, but mixed signals persist.
Key Points:
1. Consumers remain fearful of a recession due to interest rate hikes.
2. Consumers plan to buy motor vehicles and houses, but fewer anticipate purchasing major household appliances.
3. Consumers intend to spend less on discretionary services but expect to increase spending on healthcare and streaming services.
German consumer confidence is expected to decrease in September due to persistently high inflation rates and a lack of clear upward or downward trend in the consumption climate.
German consumer sentiment is expected to decline in September due to decreasing income expectations and propensity to buy, hindering overall economic development and growth prospects in the country.
Consumer confidence in the US fell in August due to concerns about inflation, reversing the optimism from the past two months, according to The Conference Board's Consumer Confidence Index.
Consumer confidence fell in August 2023, erasing back-to-back increases in June and July, as consumers expressed concerns about rising prices, employment conditions, and future business prospects amidst a cooling labor market and high interest rates.
The number of job vacancies in the US dropped in July, indicating a cooling labor market that could alleviate inflation, while fewer Americans quit their jobs and consumer confidence in the economy decreased, potentially impacting consumer spending; these trends may lead the Federal Reserve to delay a rate hike in September.
Consumer confidence in the United States has plummeted as high prices and interest rates deter spending, with the Conference Board's consumer confidence index falling to 106.1 in August from a revised 114 in July.
US consumer confidence dropped to 106.1 in August from 114 in the previous month, reversing gains made in June and July, with economists blaming higher gasoline prices as a key factor behind the decline.
U.S. mortgage rates have dropped for the first time in six weeks, due to uncertainty surrounding the possibility of the U.S. Federal Reserve increasing interest rates in September.
Consumer confidence is dropping despite a strong economy, leading to questions about the factors influencing sentiment.
Wall Street is optimistic about the September trading month, but there are concerns about falling consumer confidence data and a potential recession next year, according to Commonwealth Financial Network Chief Investment Officer Brad McMillan.
The US economy is predicted to enter a recession by spring, leading to a 25% or more crash in the S&P 500, according to economist David Rosenberg, who warns that American consumers are nearing their spending limits and rising home prices reflect a weak housing market.
Consumer spending has remained resilient, preventing the US economy from entering a recession, and this trend will likely continue due to low household debt-to-income levels.
The US consumer is predicted to experience a decline in personal consumption in early 2024, which could lead to a potential recession and downside for stocks, as high borrowing costs and dwindling Covid-era savings impact household budgets.
Consumer spending in the US has supported the economy despite concerns of a recession, but rising interest rates, the resumption of student loan payments, and dwindling savings are predicted to put pressure on consumers and potentially lead to a shrinking of personal consumption.
Consumer spending in the US is showing signs of cooling, with retail sales expected to slow down in August, indicating that the resilience of the consumer may be waning due to increased borrowing, depleted savings, and the impact of inflation.
Americans are feeling uncertain about the economy's direction and are starting to worry about a possible government shutdown, as consumer sentiment dips in September due to concerns about inflation and higher gas prices.
Consumer sentiment in the US fell for the second month in a row in September, reflecting concerns about the economy, even though Americans believe that inflation will continue to slow.
Builder confidence in the US housing market unexpectedly dropped for the second consecutive month in September, as high mortgage rates dampened consumer demand for new homes.
U.S. homebuilder confidence fell to its lowest level since April in September due to high interest rates, leading to decreased affordability for buyers and a decline in demand for new home construction.
A drop in savings among Americans and record credit-card debt could have disastrous consequences for the economy if a recession occurs, as data shows personal savings rates remain historically low and many Americans have less than $5,000 in savings.
The US Consumer Confidence Index experienced its largest monthly decline since December 2020 in September, fueled by decreased expectations for income, business, and labor market conditions, as well as concerns about rising inflation and political uncertainty.
Sales of new U.S. homes dropped unexpectedly in August due to a spike in mortgage rates, causing a decline in consumer demand and contributing to a decline in prices.
The strength of the US consumer, which has been propping up the economy, is starting to crack due to factors such as student loan payments, soaring gas prices, rising insurance premiums, dwindling personal savings, and potential disruptions like the United Auto Workers strike and a potential government shutdown, raising concerns about a possible recession.
Consumer spending remains resilient despite inflation and rising prices, contributing to economic growth, while the risk of a recession in the US has decreased but not disappeared completely.
Americans' views of the economy have worsened in September, with only 20 percent saying economic conditions are good and 73 percent believing that economic conditions in the country as a whole are worsening, according to a recent Gallup poll.
India's retail inflation is expected to drop below 6% in September due to cooling prices for essential commodities, although food inflation stood at around 10% in August.
Amidst economic uncertainty, experts predict a looming recession next year, with varying degrees of certainty, due to factors such as increased costs, global variables, and a potential decline in consumer spending.
Consumer prices in the US rose by 0.4% in September, slightly surpassing expectations, with the consumer price index (CPI) rising by 3.7% compared to the previous year, higher than the estimated 3.6%.
Consumer sentiment in the US fell to its lowest level since May, with Americans' expectations for inflation over the next year reaching the highest level since April, potentially leading to higher price pressure.
Persistently high inflation in the US has led to a 7% decrease in consumer sentiment in October, with concerns over inflation impacting personal finances and expectations for future inflation rising to 3.8%.
Economists are predicting that the U.S. economy is less likely to experience a recession in the next year, with the likelihood dropping below 50% for the first time since last year, thanks to factors such as falling inflation, the Federal Reserve halting interest rate hikes, and a strong labor market.
September saw a significant decline in home sales, with the lowest tally since 1995 and a 32 percent drop from the previous year, due to high interest rates and homeowners' reluctance to sell and move to a place with a higher monthly payment, leaving few options for prospective buyers.
U.S. retail sales in September exceeded expectations due to increased purchases of motor vehicles, restaurant visits, and bar spending, indicating a potential acceleration in economic growth in the third quarter, but also raising concerns of a Federal Reserve interest rate hike in December.
The strong performance of the US consumer, with retail sales rising 0.7% in September, could lead to more Federal Reserve rate hikes and upside risks to inflation entering the fourth quarter of 2023.
US retail sales in September exceeded expectations, rising 0.7% from the previous month, suggesting that consumer spending remains strong and could lead to more rate hikes by the Federal Reserve.
Despite inflationary pressures, American consumers continue to spend, with September's sales reaching $704 billion, a 3.8% increase from the previous year, indicating a healthy consumer outlook for the upcoming holiday season.
U.S. existing home sales dropped 2% in September due to high mortgage rates and a shortage in housing supply, with prices falling slightly and the supply crunch being driven by the surge in mortgage rates over the past year.
Sales of previously occupied U.S. homes in September dropped to their slowest pace in over a decade due to surging mortgage rates and limited inventory, while home prices continue to rise.
Retail sales across Great Britain have fallen by more than expected, with volumes dropping by 0.9% in September, suggesting a drop in consumer confidence and a possible recession in the retail sector. Factors such as cost-of-living pressures and warm weather affecting sales of autumn clothing contributed to the decline.
The US housing market is experiencing a significant decline in existing-home sales, with September seeing a 15% drop compared to the previous year, due to factors such as high mortgage rates, low inventory levels, and rising home prices.
British retail sales fell by 0.9% in September, raising concerns that the retail industry has entered a recession before the crucial festive shopping season, as consumers cut back on spending due to mild weather conditions and rising inflation.
