Watch What Consumers Do, Not How They Feel
9 hours, 51 minutes ago

Watch What Consumers Do, Not How They Feel

Live Mint  

-- Over the past few years, even as they have been gritting their teeth and complaining about higher prices, consumers have been fueling US economic growth. Consumer spending has been partially driven over the past three years by excess savings accumulated during the pandemic, which reached a peak of $8,000 per adult in August 2021. While the higher interest rates did little to discourage consumers from spending money they already had, they are more likely to deter spending from future income — that is, borrowing. The strong labor market over the past few years drove gains in household incomes across the income spectrum, giving a strong base for ongoing spending. If the labor market slows too much in response to a cutback in consumer spending, Americans will likely spend even less.

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History of this topic

5 reasons to be optimistic about the 2025 economy
2 weeks ago

5 reasons to be optimistic about the 2025 economy

CNN  

New York CNN — The world faces a plethora of serious problems entering 2025. “The US economy, as it’s done for many years, continues to chug along at a very steady pace,” said David Kelly, chief global strategist at JPMorgan Asset Management. “You’re going to need a shock to put the economy in recession,” Kelly said, “and I don’t see …

US consumer confidence ticks higher on better outlook for hiring
1 month, 2 weeks ago

US consumer confidence ticks higher on better outlook for hiring

Associated Press  

WASHINGTON — Americans’ outlook on the economy improved modestly in November, lifted by expectations for lower inflation and more hiring. Rising consumer confidence suggests Americans may spend more in the coming months, which would help boost economic growth. The Conference Board doesn’t break out its responses by party, but another measure of consumer sentiment by the University of Michigan showed …

Americans continue to spend despite naming the economy and inflation as top election concerns
1 month, 4 weeks ago

Americans continue to spend despite naming the economy and inflation as top election concerns

The Independent  

The latest headlines from our reporters across the US sent straight to your inbox each weekday Your briefing on the latest headlines from across the US Your briefing on the latest headlines from across the US SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Americans stepped up their …

Ahead of elections, US Federal Reserve shifts interest rates dramatically to deal with worst inflation
3 months, 3 weeks ago

Ahead of elections, US Federal Reserve shifts interest rates dramatically to deal with worst inflation

India TV News  

The Federal Reserve cut interest rates by half of a percentage point on Wednesday, kicking off what is expected to be a steady easing of monetary policy with a larger-than-usual reduction in borrowing costs that followed growing unease about the health of the job market. "The committee has gained greater confidence that inflation is moving sustainably toward 2%, and judges …

Anxiety over persistent inflation helps drive down US consumer sentiment for third consecutive month
7 months ago

Anxiety over persistent inflation helps drive down US consumer sentiment for third consecutive month

Associated Press  

WASHINGTON — U.S. consumer sentiment fell in June for the third straight month as Americans took a dimmer view of their own finances and worried about persistent inflation. The University of Michigan’s consumer sentiment index, released Friday in a preliminary version, dropped to 65.6 this month from a final reading of 69.1 in May. AP AUDIO: Anxiety over persistent inflation …

Discounting is back in fashion, as Americans get tired of paying more
7 months, 2 weeks ago

Discounting is back in fashion, as Americans get tired of paying more

NPR  

Discounting is back in fashion, as Americans get tired of paying more toggle caption Scott Olson/Getty Images After two years of paying more for things, Americans are growing more cautious about how they spend their money and are forcing retailers to offer more discounts. “It’s a cautious consumer,” said CEO Todd Vasos, describing Dollar General's typical shopper. That newfound caution …

US inflation eased last month in the first slowdown of 2024
8 months ago

US inflation eased last month in the first slowdown of 2024

Associated Press  

WASHINGTON — Led by lower food and auto prices, inflation in the United States cooled slightly last month after three elevated readings, likely offering a tentative sigh of relief for officials at the Federal Reserve as well as President Joe Biden’s re-election team. Instead, he stressed that the Fed’s policymakers need “greater confidence” that inflation is falling to their 2% …

US growth slowed sharply last quarter to 1.6% pace, reflecting an economy pressured by high rates
8 months, 3 weeks ago

US growth slowed sharply last quarter to 1.6% pace, reflecting an economy pressured by high rates

Associated Press  

WASHINGTON — The nation’s economy slowed sharply last quarter to a 1.6% annual pace in the face of high interest rates, but consumers — the main driver of economic growth — kept spending at a solid pace. Gregory Daco, chief economist at the tax and consulting firm EY, noted that the underlying economy looks solid, though it’s slowing from last …

US consumer sentiment ticks down slightly, but most expect inflation to ease further
9 months, 4 weeks ago

US consumer sentiment ticks down slightly, but most expect inflation to ease further

Associated Press  

WASHINGTON — Consumers became slightly less optimistic about the economy this month, though they continue to expect inflation to cool further, a potential sign that price increases will keep slowing. The University of Michigan’s consumer sentiment index, released Friday in a preliminary version, slipped to 76.5 in March, barely below February’s figure of 76.9. Friday’s consumer sentiment figure follows inflation …

US economy grew solid 3.2% in fourth quarter, a slight downgrade from government’s initial estimate
10 months, 2 weeks ago

US economy grew solid 3.2% in fourth quarter, a slight downgrade from government’s initial estimate

Associated Press  

WASHINGTON — The U.S. economy grew at a robust 3.2% annual pace from October through December, propelled by healthy consumer spending, the Commerce Department reported Wednesday in a slight downgrade from its initial estimate. U.S. growth has now topped 2% for six straight quarters, defying fears that high interest rates would tip the world’s largest economy into a recession. The …

Consumer sentiment edges higher as economic growth accelerates and inflation fades
10 months, 4 weeks ago

Consumer sentiment edges higher as economic growth accelerates and inflation fades

Associated Press  

WASHINGTON — A measure of consumer sentiment ticked higher this month, after soaring in December and January, underscoring that Americans are starting to feel better about the economy after several years of gloom. Still, consumer sentiment remains 6% below its long-run average after the worst spike in inflation in four decades pushed up the cost of groceries, rent, gas, and …

Recession has struck some of the world’s top economies. The US keeps defying expectations
10 months, 4 weeks ago

Recession has struck some of the world’s top economies. The US keeps defying expectations

Associated Press  

NEW YORK — As some of the world’s biggest economies stumble into recession, the United States keeps chugging along. Yet in the United States, the economy motored ahead in last year’s fourth quarter for a sixth straight quarter of growth. It’s blown past many predictions coming into last year that a recession seemed inevitable because of high interest rates meant …

American consumers feeling more confident than they have in two years
11 months, 2 weeks ago

American consumers feeling more confident than they have in two years

Associated Press  

American consumers, fresh off strong holiday spending, are feeling more confident than they have in two years. The Conference Board, a business research group, said Tuesday that its consumer confidence index rose for the third straight month, to 114.8 in January from 108 in December. The index, which measures both Americans’ assessment of current economic conditions and their outlook for …

US consumers keep spending despite high prices and their own gloomy outlook. Can it last?
1 year, 2 months ago

US consumers keep spending despite high prices and their own gloomy outlook. Can it last?

Associated Press  

WASHINGTON — A flow of recent data from the U.S. government has made one thing strikingly clear: A surge in consumer spending is fueling strong growth, demonstrating a resilience that has confounded economists, Federal Reserve officials and even the sour sentiments that Americans themselves have expressed in opinion polls. On Thursday, the government said the economy accelerated at a 4.9% …

US consumers keep spending briskly even in the face of persistent inflation and high interest rates
1 year, 2 months ago

US consumers keep spending briskly even in the face of persistent inflation and high interest rates

Associated Press  

WASHINGTON — An inflation gauge that is closely monitored by the Federal Reserve showed price increases remained elevated in September amid brisk consumer spending and strong economic growth. Taken as a whole, the figures the government issued Friday show a still-surprisingly resilient consumer, willing to spend briskly enough to power the economy even in the face of persistent inflation and …

US economy grows at faster rate in nearly 2 years
1 year, 2 months ago

US economy grows at faster rate in nearly 2 years

Hindustan Times  

The US economy heated up more than expected in the third quarter, government data showed on Thursday, as a resilient job market helped boost consumer spending, holding off the prospect of a recession. The GDP pick up reflects "accelerations in consumer spending, private inventory investment, and federal government spending" among other factors, said the Commerce Department. - "The US economy …

Americans continue to feel better about inflation and the economy
1 year, 5 months ago

Americans continue to feel better about inflation and the economy

CNN  

Washington, DC CNN — US consumers have been feeling a whole lot better this summer as inflation has continued to slow. Consumer sentiment tracked by the University of Michigan rose 11% in July from the prior month, reaching its highest level since October 2021, according to a final reading of the month’s data. “Overall, the sharp rise in sentiment was …

US consumers are feeling the most optimistic since September 2021
1 year, 6 months ago

US consumers are feeling the most optimistic since September 2021

CNN  

Washington, DC CNN — Inflation’s steady slowdown in recent months has kept Americans feeling optimistic about the future. Despite the Federal Reserve’s most aggressive rate-hiking campaign in decades, which was put on hold last month, the labor market has held remarkably steady while inflation has slowed, raising the odds of a so-called soft landing — or a scenario in which …

US economy grew at weak 1.1% rate in Q1 in sign of slowdown
1 year, 8 months ago

US economy grew at weak 1.1% rate in Q1 in sign of slowdown

Associated Press  

WASHINGTON — The U.S. economy slowed sharply from January through March, decelerating to just a 1.1% annual pace as higher interest rates hammered the housing market and businesses reduced their inventories. The economy’s slowdown reflects the impact of the Federal Reserve’s aggressive drive to tame inflation, with nine interest rate hikes over the past year. “We continue to expect the …

US economy slows sharply in January-March quarter
1 year, 8 months ago

US economy slows sharply in January-March quarter

Al Jazeera  

The US economy slowed sharply from January through March, decelerating to just a 1.1 percent annual pace as higher interest rates hammered the housing market and businesses reduced their inventories. “We continue to expect the drag from higher interest rates and tightening credit conditions to push the economy into a mild recession soon.″ Many economists have said the cumulative impact …

US consumer spending surges in January, inflation heats up
1 year, 10 months ago

US consumer spending surges in January, inflation heats up

Al Jazeera  

US consumer spending increased by the most in nearly two years in January amid a surge in wage gains. US consumer spending increased by the most in nearly two years in January amid a surge in wage gains, while inflation accelerated, adding to financial market fears that the Federal Reserve could continue raising interest rates through summer. “This report means …

US inflation and consumer spending cooled in December
1 year, 11 months ago

US inflation and consumer spending cooled in December

Associated Press  

WASHINGTON — The Federal Reserve’s preferred inflation gauge eased further in December, and consumer spending fell — the latest evidence that the Fed’s series of interest rate hikes are slowing the economy. Friday’s report from the Commerce Department showed that prices rose 5% last month from a year earlier, down from a 5.5% year-over-year increase in November. Last year’s holiday …

US inflation and consumer spending cooled in December
1 year, 11 months ago

US inflation and consumer spending cooled in December

Al Jazeera  

The pullback in consumer spending will likely be welcomed by Fed officials, who are seeking to cool the economy. The Federal Reserve’s preferred inflation gauge eased further in December, and consumer spending fell – the latest evidence that the Fed’s series of interest rate rises are slowing the economy. Friday’s report from the US Department of Commerce showed that prices …

US consumer spending, inflation cool in November
2 years ago

US consumer spending, inflation cool in November

Al Jazeera  

While economic activity is slowing amid rising interest rates, it’s not enough to discourage US Fed from more rises. Slowing economic activity amid rising borrowing costs was also flagged by other data from the Department of Commerce on Friday showing a modest gain in orders for locally manufactured capital goods last month. The personal consumption expenditures price index rose 0.1 …

This Week: Consumer confidence, consumer spending, jobs data
2 years, 1 month ago

This Week: Consumer confidence, consumer spending, jobs data

Associated Press  

A look at some of the key business events and economic indicators upcoming this week: CONFIDENCE CHECK The Conference Board delivers its latest index of U.S. consumer confidence Tuesday. The index, which measures consumers’ assessment of current conditions and their outlook for the future, has been mostly hovering above 100, despite red hot inflation and sharply higher interest rates. Consumer …

Resilient US consumers spend slightly more in August
2 years, 3 months ago

Resilient US consumers spend slightly more in August

Associated Press  

WASHINGTON — Consumers spent a bit more in August than the previous month, a sign the economy is holding up even as inflation lifts prices for food, rent, and other essentials. Yet much of that increase reflected higher prices, with an inflation gauge closely monitored by the Federal Reserve rising 0.3% in August, the government’s report showed. The inflation figures …

Resilient US consumers spend slightly more in August
2 years, 3 months ago

Resilient US consumers spend slightly more in August

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Consumers spent a bit more …

US economy drops at 0.6% annual rate from April through June
2 years, 3 months ago

US economy drops at 0.6% annual rate from April through June

Associated Press  

WASHINGTON — Battered by surging consumer prices and rising interest rates, the U.S. economy shrank at a 0.6% annual rate from April through June, the government announced Thursday, unchanged from its previous second-quarter estimate. But the Fed has raised interest rates five times this year — most recently Sept. 21 — to rein in consumer prices, which were up 8.3% …

US economy shrinks for a second quarter, fuelling recession fears
2 years, 5 months ago

US economy shrinks for a second quarter, fuelling recession fears

Al Jazeera  

The fall in US GDP comes on the heels of the Federal Reserve raising interest rates, as Chair Jerome Powell says growth needs to slow. The US economy shrank for a second straight quarter, raising chances of a recession, as decades-high inflation undercut consumer spending and Federal Reserve interest-rate hikes stymied business investment and housing demand. The report illustrates how …

US economy shrank by 1.5% in Q1 but consumers kept spending
2 years, 7 months ago

US economy shrank by 1.5% in Q1 but consumers kept spending

Associated Press  

WASHINGTON — The U.S. economy shrank in the first three months of the year even though consumers and businesses kept spending at a solid pace, the government reported Thursday in a slight downgrade of its previous estimate for the January-March quarter. Last quarter’s drop in the U.S. gross domestic product — the broadest gauge of economic output — does not …

Consumers defy inflation to support economy. For how long?
2 years, 7 months ago

Consumers defy inflation to support economy. For how long?

Associated Press  

WASHINGTON — With prices across the economy — from food, gas and rent to cars, airfares and hotel rooms — soaring at their fastest pace in decades, you might think Americans would tap the brakes on spending. “There’s still plenty of reasons to believe in the resilience of the consumer,” she said, pointing to America’s robust job market and the …

The great economic disconnect: Americans say they hate the economy but they act like they love it
3 years, 1 month ago

The great economic disconnect: Americans say they hate the economy but they act like they love it

CNN  

New York CNN Business — The Biden economy is a walking contradiction. Show of confidence: Workers are quitting like never before Of course, it’s important to note that different people are experiencing different things in today’s economy – especially given all the shockwaves set off by Covid. At the same time, a record 4.4 million Americans quit their jobs in …

Despite higher prices, US consumers keep spending up a storm
3 years, 1 month ago

Despite higher prices, US consumers keep spending up a storm

Al Jazeera  

Inflation in the United States may have surged to a 30-year high in October, but that didn’t stop consumers from spending up a storm last month as Americans got a jump start on the holiday shopping season. Sales at retail stores, online and at restaurants in the world’s largest economy increased 1.7 percent in October compared to the previous month, …

US consumer spending up a modest 0.6% with inflation high
3 years, 2 months ago

US consumer spending up a modest 0.6% with inflation high

Associated Press  

WASHINGTON — American consumers slowed their spending to a gain of just 0.6% in September, a cautionary sign for an economy that remains in the grip of a pandemic and a prolonged bout of high inflation. On Thursday, the government estimated that the economy slowed sharply to a 2% annual growth rate in the July-September period, the weakest quarterly expansion …

July US consumer spending ekes up 0.3% as delta threatens
3 years, 4 months ago

July US consumer spending ekes up 0.3% as delta threatens

Associated Press  

WASHINGTON — Growth in U.S. consumer spending slowed in July to a modest increase of 0.3% as infections from the delta variant spread, while inflation over the past 12 months hit its fastest pace in three decades. The 4.2% increase over the past year is well above the Fed’s annual inflation target of 2% but so far Fed officials view …

US consumer spending and incomes fall, but rebound is expected
3 years, 9 months ago

US consumer spending and incomes fall, but rebound is expected

Al Jazeera  

Both consumer spending and personal incomes are expected to rebound in March as Americans receive stimulus cheques. Consumers’ spending and personal incomes both fell sharply in February as severe winter storms disrupted shopping in many parts of the United States and as the government wrapped up distribution of $600 relief payments. Consumer spending fell one percent last month, the Commerce …

US consumers rebound to boost spending 2.4% as income jumps
3 years, 10 months ago

US consumers rebound to boost spending 2.4% as income jumps

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Friday’s report from the Commerce Department also showed that …

US consumer spending fell 0.2% in December in face of virus
3 years, 11 months ago

US consumer spending fell 0.2% in December in face of virus

Associated Press  

WASHINGTON — U.S. consumers slowed their spending by 0.2% in December, cutting back for a second straight month in a worrisome sign for an economy struggling under the weight of a still out-of-control pandemic. On Thursday, the government estimated that the economy grew at a 4% annual rate in the final three months of 2020 but shrank last year by …

Consumer spending up a slight 0.5% as virus maintains grip
4 years, 1 month ago

Consumer spending up a slight 0.5% as virus maintains grip

Associated Press  

WASHINGTON — U.S. consumers increased their spending by a sluggish 0.5% last month, the weakest rise since April, when the pandemic first erupted, and a sign that Americans remain wary with the virus resurging across the country and threatening the economy. It suggested that consumer spending, the primary driver of the U.S. economy, is being restrained by a weakened economy …

US consumer spending rises just 0.1% in August
5 years, 3 months ago

US consumer spending rises just 0.1% in August

Associated Press  

WASHINGTON — American consumers boosted their spending by just 0.1% in August, the smallest gain in six months, even as their incomes rose at a solid pace. The disappointing data on consumer spending and business investment led many economists to slash their estimates for growth in the July-September quarter. With income rising faster than spending in August, the savings rate …

Can Trump count on American consumers to save the economy from recession?
5 years, 4 months ago

Can Trump count on American consumers to save the economy from recession?

LA Times  

Recent consumer spending has outperformed expectations, compensating for softness in business investments, manufacturing and net exports due largely to President Trump’s trade war with China. Americans have been spending heartily in recent months, outperforming expectations and compensating for the softness in business investments, manufacturing and net exports due largely to Trump’s trade war with China. One closely followed national survey, …

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