All articles tagged with #us consumers
Goldman Sachs analysts estimate that US consumers will bear over half (55%) of the costs of President Trump's tariffs by the end of 2025, as companies raise prices and importers absorb some costs through price cuts, leading to increased inflation and ongoing trade tensions.
Goldman Sachs economists estimate that US consumers will bear over half (55%) of the costs of tariffs by the end of 2025, leading to increased prices and a projected inflation rate of 3% in December, as companies and foreign exporters adjust to trade restrictions implemented under President Trump's trade policies.
President Trump's tariffs, initially believed to be absorbed mainly by foreign exporters, are increasingly being paid by U.S. consumers and businesses, with estimates suggesting consumers could face up to a 75% cost pass-through, potentially pushing inflation above the Federal Reserve's target.
Goldman Sachs reports that US consumers will bear the majority of the costs from President Trump's tariffs, leading to increased inflation and influencing Federal Reserve interest rate decisions, with tariffs expected to raise core inflation to 3.2% by December.
US consumers are tightening their belts, leading to financial challenges for restaurant chains, as highlighted by the Financial Times, which discusses the broader economic implications and subscription-based insights.
US travel demand is declining as consumers cut back on vacations and last-minute bookings, driven by economic uncertainty, inflation fears, and political tensions, particularly affecting lower-income households and the tourism industry.
US consumers are beginning to cut back on spending as inflation and supply chain issues continue to strain household budgets. The shift in consumer behavior is evident in reduced spending on items such as clothing and electronics, signaling potential challenges for retailers during the crucial holiday shopping season. Economists are closely monitoring these trends as they could have significant implications for the overall economic outlook and the financial well-being of households.
US consumers' inflation expectations have risen for a second consecutive month in November, reaching the highest levels since April, according to a survey by the University of Michigan. Despite signs of slowing price increases, households anticipate inflation to accelerate to 4.5% over the next year. The survey also revealed that consumers see inflation running at 3.2% on average over a five-year horizon. These expectations have increased despite consumers acknowledging the continued slowdown in inflation, suggesting concerns that the softening of inflation could reverse in the future. The Federal Reserve remains cautious about the potential for a reversal and aims to keep inflation expectations well-anchored to avoid contributing to further price increases.
French spirits company Rémy Cointreau has seen its shares drop to a three-year low as US consumers are turning away from cognac. The company's sales have been hit by a decline in demand for its Rémy Martin cognac brand, particularly in the US market. This drop in sales has led to a decrease in the company's stock price, reaching its lowest point in three years.
Target CEO Brian Cornell will meet with President Joe Biden along with other business leaders to discuss the economy and labor market. The meeting comes as Target faces challenges from a tough economic environment, inflation, and political controversies. The retailer recently announced store closures and lowered its full-year forecast. The meeting aims to address these issues and gain insights into U.S. consumer behavior.
Bank of America's credit card data reveals a decrease in consumer spending, with a 0.3% decline in the week ending September 23 compared to the same period last year. The decline has been observed for several weeks, particularly in discretionary categories excluding auto and gas purchases. This data suggests a potential slowdown in consumer spending, contradicting the previously strong consumer narrative. Economists warn of headwinds such as rising gas prices, a potential government shutdown, ongoing strikes, and the resumption of student loan payments that could further impact spending. However, the current strength of the labor market may help mitigate the expected slowdown.
Approximately 60 percent of U.S. consumers, including those with high incomes, reported living paycheck to paycheck in August, according to a report by Pymnts and LendingClub. This figure remained unchanged from the previous year. The report also revealed that nearly 20 percent of paycheck-to-paycheck consumers struggle to pay bills, while almost half of all consumers experience seasonal financial distress. Reasons for financial instability include supporting family members and nonessential spending, which tends to increase during the holiday season.
US consumer sentiment dipped slightly in August after two months of growth, with the University of Michigan's consumer sentiment index falling to 71.2 from 71.6 in July. While consumers perceived few changes in the economic environment, rising gas prices and a 3.2% increase in the Consumer Price Index in July could impact sentiment in the future. Expectations for inflation rates in the year ahead also decreased slightly. However, if inflation cools down in the coming months, it may positively impact consumer sentiment, although the resumption of student loan payments later this year could still pose a challenge for household budgets.
Retail sales in the US rose by 0.2% in June, marking the third consecutive month of growth. However, the increase was slower than expected and below economists' forecasts. Furniture sales saw a significant jump of 1.4%, while spending at department stores fell by 2.4%. Excluding sales at gasoline stations and on cars and parts, retail sales rose by 0.3% from May. Overall, retail sales increased by 1.5% compared to June 2020, indicating a modest pace of growth. The figures suggest that US consumers are still spending, despite higher interest rates, inflation, and economic uncertainty, but the sustainability of this momentum remains uncertain.
Despite claims from JPMorgan Chase CEO Jamie Dimon and other bank executives that U.S. consumers are in good financial shape, evidence suggests otherwise. Consumer debt is rising, inflation is impacting food and rent costs, many Americans lack emergency savings, and student loan payments are set to resume in October. While corporate earnings may show some positive signs, the overall economic health of households is not accurately reflected. The idea of an "average consumer" is a myth, as financial situations vary greatly. Bankers acknowledge potential risks but emphasize that current conditions are a normalization rather than a deterioration. While the job market and consumer sentiment have improved, many households are still facing financial challenges.