#inflation #consumerconfidence #Deltavariant
Yahoo Finance's Myles Udland reports on the drop in consumer confidence and the impact on markets.
Consumer confidence has taken a hit amid the spread of the Delta variant and some inflation pressures. Meanwhile, quarterly results from retailers across the spectrum suggest consumers remain ready, willing, and able to continue spending and powering this economic recovery.
On the one hand, consumers tell us their view on the economy hasn't been this bad in over a year. On the other hand, establishments that sell goods and services to consumers say the backdrop remains as strong as it has since the pandemic recovery began.
On Friday morning, as markets were focused on Federal Reserve Chair Jay Powell's remarks at the Jackson Hole Economic Symposium, the University of Michigan released its final look at consumer sentiment in August. And as this report's preliminary data suggested a few weeks back, there has been a distinct pullback in how consumers feel about their economic prospects this month.
"Consumers' extreme reactions were due to the surging Delta variant, higher inflation, slower wage growth, and smaller declines in unemployment," said Richard Curtin, chief economist for the survey. "The extraordinary falloff in sentiment also reflects an emotional response, from dashed hopes that the pandemic would soon end and lives could return to normal."
Which is certainly not an encouraging assessment of consumers going into the holiday season, given that consumption accounts for around two-thirds of GDP growth.
But in an email on Friday afternoon, Renaissance Macro's Neil Dutta flagged the Chicago Fed's retail tracking survey, which suggests robust growth in spending has taken place this month. "It might be worth pointing out that the Chicago Fed is currently forecasting a 2.4% increase in retail sales in August," Dutta wrote. "This forecast is based on actual data as opposed to conjecture."
For more on this article, please visit:
https://finance.yahoo.com/news/watching-what-consumers-do-morning-brief-090957731.html
Don't Miss: Valley of Hype: The Culture That Built Elizabeth HolmesAugust 30. 2021 pre-show starting at 4:30 pm EST and movie at 5:00 pm EST.
https://youtu.be/Sb179GLPNYE
Watch the 2021 Berkshire Hathaway Annual Shareholders Meeting on YouTube:
https://youtu.be/gx-OzwHpM9k
Subscribe to Yahoo Finance: https://yhoo.it/2fGu5Bb
About Yahoo Finance:
At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life.
Yahoo Finance Plus: With a subscription to Yahoo Finance Plus get the tools you need to invest with confidence. Discover new opportunities with expert research and investment ideas backed by technical and fundamental analysis. Optimize your trades with advanced portfolio insights, fundamental analysis, enhanced charting, and more.
To learn more about Yahoo Finance Plus please visit: https://yhoo.it/33jXYBp
Connect with Yahoo Finance:
Get the latest news: https://yhoo.it/2fGu5Bb
Find Yahoo Finance on Facebook: http://bit.ly/2A9u5Zq
Follow Yahoo Finance on Twitter: http://bit.ly/2LMgloP
Follow Yahoo Finance on Instagram: http://bit.ly/2LOpNYz
Follow Cashay.com
Follow Yahoo Finance Premium on Twitter: https://bit.ly/3hhcnmV
0 Comments