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.
September historically has been the worst performing month for the U.S. stock market, and with the recent decline in August, investors should prepare for further volatility and potentially disappointing results in September.
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.
U.S. manufactured goods orders experienced a significant 2.1% decline in July, the first drop in four months, due in part to higher interest rates impacting business equipment spending.
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 demand for mortgages in the US has dropped to its lowest level since 1996, with both purchase and refinance applications falling due to low housing inventory and elevated mortgage rates.
Canadian consumer and business confidence has plummeted to its lowest levels since the pandemic, leading to a disconnect between the state of the economy and the public's negative sentiment, which could be attributed to anxiety-inducing inflation and concerns about rising interest rates as well as worsening structural problems such as unaffordable home prices and stagnant GDP per capita.
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 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.
British retailers reported a smaller annual fall in sales for September and expect a modest improvement in the months ahead, according to the Confederation of British Industry (CBI).
Consumer confidence in the US fell for the second consecutive month in September 2023, with the Expectations Index dropping below the recession threshold, reflecting concerns about rising prices, the political situation, and higher interest rates. Assessments of the present situation were relatively unchanged, while expectations for business conditions, job availability, and incomes declined. Concerns about the current and future financial situation of families also increased.
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.
Pending home sales in the US dropped 7.1% in August, following a surge in mortgage rates to levels not seen in 20 years, with all four US regions experiencing monthly losses and year-over-year declines in transactions.
In September, the stock market had a poor performance, which is typical for this month.
Supermarket competition in the UK has led to the first monthly drop in food prices in over two years, with prices down 0.1% in September, according to the British Retail Consortium (BRC). The BRC also reported that grocery inflation fell to 9.9% in September, down from 11.5% in August, while overall shop price inflation decreased to 6.2%. Although prices are still rising, the rate of inflation is slowing, providing some relief for households. However, the BRC warned of potential risks such as high interest rates, climbing oil prices, and supply chain disruption.
Despite a strong job market, workers' confidence has dropped to its lowest level since 2016, attributed to financial stress and the comparison to the scorching-hot job market in 2021 and 2022.
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.
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.
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.
Confidence among builders in the U.S. housing market has fallen for the third consecutive month due to higher mortgage rates, leading to decreased demand for new homes. The National Association of Home Builders/Wells Fargo Housing Market Index dropped to 40, the lowest reading since January 2023, reflecting concerns about buyer traffic and housing affordability.
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.
Homebuilder confidence in the US dropped to its lowest level in 10 months due to high mortgage rates, which have led to lower buyer traffic and decreased housing affordability.
Home sales in the US dropped in September to the lowest level in 13 years due to rising interest rates and climbing home prices, making it unaffordable for many potential buyers. The low inventory of homes for sale pushed prices up, with the median price for existing homes reaching a record high of $394,300 last month.
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.
Retail sales in the UK fell more than expected in September due to unseasonably warm weather and cost-of-living pressures, with clothing stores seeing a notable decline in sales of colder weather gear, while food sales increased slightly.
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.
