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Household Spending

All articles tagged with #household spending

economics23 days ago•2 min saved

Oil shock could erase gains from bigger tax refunds, economists warn

Stanford economists warn that higher oil and gasoline costs could largely offset the extra tax refunds Americans are set to receive this year. In a scenario where crude prices spike (with disruption to the Strait of Hormuz) but retreat later, U.S. households could spend about $740 more on gas this year, roughly canceling out the projected $360–$748 in additional refunds from last year’s tax changes. The result is a net drag on spending growth and inflation, with big variation by household — non-drivers and EV owners face less pain while long commuters face higher costs — making the outlook uncertain and tempering the hoped-for fiscal tailwind.

via Axios|

#economics #gasoline-prices #household-spending

economy6 months ago•4 min saved

US Economy Shines Despite Recession Fears

The U.S. economy shows signs of resilience with steady household spending and low unemployment, despite rising inflation and slower job growth, prompting discussions on whether the Federal Reserve should cut interest rates further.

via MarketWatch|

#economy #federal-reserve #household-spending

economics2 years ago•0 min saved

US Inflation Cools as Consumer Spending Rebounds

The Federal Reserve's preferred inflation metric, the core PCE price index, increased by 0.3% last month, showing a cooling trend compared to January's 0.5% gain, while household spending rebounded, indicating a potential shift in economic activity.

via Bloomberg|

#core-pce-price-index #economic-data #economics

finance2 years ago•0 min saved

US Economy Shows Strength with Moderating Inflation and Robust Job Growth

Despite a slowdown in the core personal consumption expenditures price index and a rise in household spending, the overall bullish narrative for stocks on Wall Street remains unchanged after the US inflation data was released.

via Bloomberg|

#federal-reserve #finance #household-spending

economy2 years ago•4 min saved

Investors Brace for the American Consumer's Impending Wall

According to Bloomberg's Markets Live Pulse survey, more than half of respondents believe that personal consumption, the main driver of economic growth, will shrink in early 2024, marking the first quarterly decline since the pandemic began. Another 21% predict this reversal will happen even sooner, in the last quarter of this year, as high borrowing costs and dwindling Covid-era savings impact household budgets. This finding contradicts the optimism seen in US equity markets, and if consumer spending contracts, it could lead to further downside for stocks. While the US economy is currently showing signs of growth, some analysts question the sustainability of this strength, attributing it to temporary factors such as a summer splurge on entertainment. Headwinds such as rising delinquency rates on credit cards and auto loans, as well as the impending resumption of student loan repayments, pose challenges for consumers in the coming months.

via Yahoo Finance|

#economic-growth #economy #household-spending

economy2 years ago•3 min saved

Fed's Rate Hike Plans in Jeopardy as PCE Inflation Slows in June

The personal consumption expenditures (PCE) inflation measure, closely monitored by the Federal Reserve, dropped sharply in June, potentially influencing the Fed's decision to maintain interest rates after a series of aggressive hikes. While consumer prices increased by 3% from a year earlier, below the 3.8% pace in May, the annual increase in core prices fell to 4.1%, the lowest since September 2021. Household income and spending both rose, indicating a consumer with the ability to spend and potentially driving prices higher. The reports suggest a positive direction for the economy, but the Fed may remain cautious about halting rate increases until there is sustained evidence of an inflation slowdown.

via USA TODAY|

#consumer-prices #economy #federal-reserve

economy2 years ago•1 min saved

Eurozone in Technical Recession Amidst Rising Prices and Household Struggles.

The eurozone has fallen into recession due to rising food and energy prices that have hit household spending. The economy of the 20-nation bloc contracted by 0.1% between January and March, after also shrinking in the final three months of 2022. Revised data from Germany contributed to the move into recession. The bad news comes after a tough year for European economies, as surging energy prices sparked by Russia's war on Ukraine have driven up the cost of living.

via BBC|

#economy #eurozone #germany

economy2 years ago•2 min saved

Inflation and Russian ban push German economy into recession.

The German economy entered a recession in Q1 2023, with GDP falling by 0.3% due to high inflation affecting household spending. The decline follows a 0.5% contraction in Q4 2022. The German finance minister expressed concern over the country's potential for growth compared to other developed economies. The economy minister attributed the recession to Germany's previous reliance on Russia for energy supply. Household consumption was down 1.2% quarter on quarter, while government spending decreased by 4.9%. Investment in machinery and equipment increased by 3.2%, and exports rose 0.4%. The German Bundesbank expects modest growth in Q2 2023.

via Reuters|

#economy #gdp #germany

economy2 years ago•1 min saved

Market Outlook: Inflation, Debt Ceiling, and Household Spending Trends Analyzed.

The New York Federal Reserve's Survey of Consumer Expectations for April showed that the outlook for household spending fell to an annual rate of 5.2%, the lowest level since September 2021, reflecting downbeat consumer sentiment and a potential slowdown for inflation. Respondents expect an inflation rate of about 4.4% in the next 12 months, still above the Fed's 2% inflation target, though drifting closer to the goal. The survey's results come less than a week after the Fed approved its 10th consecutive interest rate hike since March 2022.

via CNBC|

#consumer-sentiment #economy #employment-outlook