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☆ Government shutdown, labor strikes will likely weigh on US consumers’ attitudes
▼ + stars: | 2023-09-29 | by ( Bryan Mena | ) edition.cnn.com time to read: +3 min

Washington, DC CNN —Americans are taking notice of a possible government shutdown and the uncertainty of ongoing labor strikes, according to the University of Michigan’s latest consumer sentiment survey. The university’s Consumer Sentiment Index edged lower by 1.4 points in September, according to a final reading. That would mean some federal workers become furloughed and agencies operate with skeleton crews, hamstringing agencies’ ability to provide crucial government services. The ongoing United Auto Workers strike is also not expected to end soon. With so much turmoil, Americans will likely feel uneasy in the coming weeks, which could affect their spending.

Persons: ”, Joanne Hsu, There’s Organizations: DC CNN, University of Michigan’s, “, Republicans, United Auto Workers, UAW, Ford, GM, Kaiser Permanente, Commerce Department Locations: Washington, Kaiser, California , Colorado , Oregon, Washington , Virginia, Las Vegas, Reno

☆ Why the Fed's interest rate move may hinge on inflation expectations
▼ + stars: | 2023-09-19 | by ( Andrea Miller | In Dreajmiller | ) www.cnbc.com time to read: +3 min

The U.S. seemed to be winning its battle against inflation, but the latest consumer price index data showed inflation rose more than expected. The University of Michigan's consumer sentiment August survey indicated consumers' one-year inflation expectations were at 3.3%, marking three consecutive months of stability. Inflation expectations, or the rate at which consumers expect prices to rise or fall in the future, can influence higher prices in the economy. Inflation expectations play a crucial role in the decisions made by the Federal Reserve. But consumer expectations of inflation are still above the Fed's 2% inflation rate target.

Persons: Joanne Hsu, It's, Hsu, Claudia Sahm, Jerome Powell's, Powell, Barry Glassman Organizations: University of Michigan, The University of, Consumers, CNBC, Federal Reserve, Sahm Consulting, Federal, Kansas City, Wealth Services Locations: U.S, Jackson Hole , Wyoming

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHow inflation expectations and consumer behavior can manifest higher pricesWhat people believe may happen to prices in the future can influence actual inflation. "People behave in accordance with their expectations and with their sentiment and attitudes towards the economy," Joanne Hsu, director of the Surveys of Consumers at the University of Michigan, told CNBC. Watch the video above to learn more about how inflation expectations are measured, why the Federal Reserve cares so much about what Americans predict and how consumer behavior can manifest higher prices.

Persons: Joanne Hsu Organizations: Consumers, University of Michigan, CNBC, Reserve

Consumer sentiment dipped slightly in September, indicating Americans are tentative about the direction of the economy, according to the latest survey-based index from the University of Michigan. The overall consumer sentiment index, released on Friday, retreated to 67.7 from 69.5 in August, while the current conditions assessment dropped to 69.8 from 75.7 and the forward-looking expectations index increased to 66.3 from 65.5. “Sentiment this month was characterized by divergent movements across index components and across demographic groups with little net change from last month. There was improvement in how consumers see inflation going forward. That means workers are keeping just ahead of inflation, although prices for necessities such as groceries and gasoline have increased.

Persons: ”, Joanne Hsu, “, ” Hsu, ” Bernard Baumohl, Baumohl, “ They’re, Joe Biden, – Ford, Peter Berezin Organizations: University of Michigan, Consumers, San Francisco Federal Reserve Bank, Economic Outlook, Supreme, United Auto Workers, General Motors, Senate, Fed, BCA Research, Global Locations: Saudi Arabia, Russia, U.S

☆ Americans are feeling gloomier about the economy
▼ + stars: | 2023-09-15 | by ( Bryan Mena | ) edition.cnn.com time to read: +1 min

Washington, DC CNN —Americans aren’t feeling gloomy about higher gas prices just yet, but they’re still on edge about inflation and the economy’s direction — and concerns are starting to surface about the possibility of a government shutdown. Consumer sentiment tracked by the University of Michigan edged down in September from the prior month by 1.8 points, according to a preliminary reading released Friday. “Both short-run and long-run expectations for economic conditions improved modestly this month, though on net consumers remain relatively tentative about the trajectory of the economy,” said the University of Michigan’s Surveys of Consumers Director Joanne Hsu in a release. Sentiment fell to its lowest level on record last summer when gas prices topped $5 a gallon and inflation reached a four-decade high. Consumers’ expectation of inflation rates in the year ahead fell to a 3.1% rate in September, down from 3.5% in the prior month.

Persons: they’re, ”, Joanne Hsu Organizations: DC CNN, University of Michigan, University of Michigan’s, AAA Locations: Washington

☆ How an empathy-first approach can help businesses increase profitability
▼ + stars: | 2023-08-29 | by ( Sponsor Post | Created Insider Studios With Paypal | ) www.businessinsider.com time to read: +8 min

78% of global consumers said they will be more loyal to businesses that help them through difficult times. of global consumers said they will be more loyal to businesses that help them through difficult times. These activities not only help make businesses more competitive, they also show workers that employers care about their professional growth. Here are three strategies businesses are using to help consumers navigate economic instability. 5 Le Parisien, Carrefour launches an online 'anti-inflation button' to help consumers buy cheaper, Nov 2022.

Persons: Joanne Hsu, upskilling, there's, that's, Agrobank, PwC, Kantar Organizations: PayPal, TrendWatching, Consumers, University of Michigan, Carrefour, Entrepreneurship, Insider Studios Locations: verticals, Malaysia

☆ Consumers are growing slightly more cautious about the economy
▼ + stars: | 2023-08-25 | by ( Alicia Wallace | ) edition.cnn.com time to read: +2 min

Minneapolis CNN —Americans’ attitudes toward the US economy appear to be growing more tepid. The University of Michigan’s closely watched consumer sentiment index measured 69.5 in August, down slightly from July. “Consumers perceive that the rapid improvements in the economy from the past three months have moderated, particularly with inflation, and they are tentative about the outlook ahead,” Joanne Hsu, director of the university’s Surveys of Consumers, said in a statement. Inflation expectations for the year ahead ticked down to 3.3% from 3.4% in July, showing “remarkable stability” but still trending higher than pre-pandemic expectations, which ranged in the 2.3% to 3% range. Inflation expectations are crucial data points for the Federal Reserve.

Persons: ” Joanne Hsu, Hsu, ” Hsu, “ Organizations: Minneapolis CNN, University of Michigan’s, Consumers, Federal Reserve Locations: Minneapolis, Michigan

☆ US consumers are feeling less optimistic about the economy for the first time this summer
▼ + stars: | 2023-08-11 | by ( Bryan Mena | ) edition.cnn.com time to read: +3 min

Washington, DC CNN —Americans became slightly less optimistic about the economy this month, following two straight months of growing confidence. Sentiment had been on an upswing throughout the summer, mostly due to slower inflation, and is well above the record lows reached this time last year. Signs of cooling inflationGas prices, which are highly visible indicators of inflation for consumers, have risen in recent weeks, which could weigh on sentiment in the future. Still, consumers face the resumption of student loan payments later this year, and that could weigh on household budgets. US consumers opened up their wallets this summer, with many flocking to the smash-hit “Barbie” movie, attending concerts by Taylor Swift or Beyoncé, or traveling abroad.

Persons: “, ”, Joanne Hsu, Ryan Sweet, bode, Kieran Clancy, Barbie, Taylor Swift Organizations: DC CNN, University of Michigan, University of Michigan’s, University, Oxford Economics, Federal Reserve Bank of San, Pantheon, Consumer, Commerce Department, Federal, Atlanta Locations: Washington, June’s, Federal Reserve Bank of San Francisco, Michigan

☆ Americans continue to feel better about inflation and the economy
▼ + stars: | 2023-07-28 | by ( Bryan Mena | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —US consumers have been feeling a whole lot better this summer as inflation has continued to slow. That’s a huge improvement from June 2022, when consumer sentiment fell to its lowest level on record and inflation reached a four-decade high of 9.1%. “However, sentiment for lower-income consumers fell.”Indeed, recent data continue to reflect inflation slowing. Consumer spending is the main engine of the economy, accounting for about two-thirds of output, and much of it hinges on the state of the labor market. The Fed certainly wants to see core inflation continue to decelerate, but Powell routinely points to the labor market not being balanced.

Persons: ”, Joanne Hsu, Lydia Boussour, Jerome Powell, ” Powell, Powell Organizations: DC CNN, University of Michigan, University of Michigan’s, Federal, National Association for Business Economics, Fed, “, Bureau of Labor Statistics Locations: Washington, EY

☆ US inflation outlook brightening; consumer sentiment near two-year high
▼ + stars: | 2023-07-14 | by ( Lucia Mutikani | ) www.reuters.com time to read: +6 min

Data for May was revised to show import prices declining 0.4% instead of the previously reported 0.6%. Though consumer inflation remains above the Fed's 2% target, the pace of increase has slowed sharply since peaking in June 2022, giving consumers some relief. INFLATION EXPECTATIONS ANCHOREDThough the survey's inflation expectations increased this month, that was probably because most consumers were interviewed before the release of June's consumer price index report. "Import prices are subtracting from the pernicious trend of the goods inflation Americans have been paying." There were decreases in the cost of nonagricultural industrial supplies and materials as well as food, which canceled out rises in prices for capital goods, consumer goods and motor vehicles.

Persons: Jeffrey Roach, Joanne Hsu, Shannon Seery, Christopher Rupkey, Lucia Mutikani, Christina Fincher, Paul Simao Organizations: Federal Reserve, LPL Financial, Reuters, University of Michigan, University of Michigan's, Consumers, Treasury, Labor, Thomson Locations: WASHINGTON, U.S, Charlotte , North Carolina, Wells, New York, United States, China

☆ Americans continue to feel confident about the economy and inflation
▼ + stars: | 2023-07-14 | by ( Bryan Mena | ) edition.cnn.com time to read: +1 min

Washington, DC CNN —Inflation’s steady slowdown in recent months has kept Americans feeling optimistic about the future. Consumer sentiment tracked by the University of Michigan rose 13% in July, the second straight month of improvement, according to a preliminary reading released Friday morning. Meanwhile, the report showed that consumers’ expectations for inflation rates remained at their lowest levels since early 2021. Consumers see inflation rates of 3.4% in the year ahead, and while that’s well below last year’s 5.4% peak, it’s slightly higher than the previous reading. “I feel like we are on a golden path of avoiding recession,” Chicago Fed President Austan Goolsbee told CNBC last week.

Persons: ”, Joanne Hsu, “, Austan Goolsbee Organizations: DC CNN, University of Michigan, Consumers, Chicago Fed, CNBC Locations: Washington

☆ The US economy is doing way better than the rest of the rich world
▼ + stars: | 2023-07-07 | by ( Noah Sheidlower | ) www.businessinsider.com time to read: +4 min

The US is performing much better than many other wealthy nations when comparing economic growth and inflation rates. The US had the highest GDP growth since the start of the pandemic among the G7 countries, an informal group of industrialized democracies. Even when taking out food and energy prices, which were especially elevated in Europe due to the invasion of Ukraine, the US came in below the other G7 countries. Despite this data, "inflation going forward remains considerably uncertain across all G7 nations, including the US," the CEA wrote. But despite the US's outperformance on GDP and inflation, many Americans are still worried about the nation's economy.

Persons: —, Joanne Hsu, Hsu Organizations: US, Service, OECD, Commerce Department, White House Council of Economic Advisors, Index, CEA, University of Michigan, Consumers Locations: Canada, Italy, Germany, Japan, Europe, Ukraine

American workers are still quitting their jobs, per Bureau of Labor Statistics data. The Bureau of Labor Statistics' newly released monthly Job Openings and Labor Turnover Survey shows that job openings are still high, even though they dropped slightly from April. Plus, the number of workers quitting their jobs actually grew in May, all while layoffs stayed near historic lows. It signals a labor market where workers — especially blue-collar workers — still feel comfortable leaving their jobs, with plenty of opportunities awaiting them, including remote and hybrid options. The sector — which houses, in part, tech workers — was one industry among a handful that saw a dip in its quit rate.

Persons: —, Nick Bunker, it's, Bunker, Joanne Hsu, Hsu, There's Organizations: Labor Statistics, Service, Privacy, Labor, Survey, Bureau of Labor Statistics, University of Michigan, Consumers

☆ Americans are growing optimistic about inflation
▼ + stars: | 2023-06-30 | by ( Bryan Mena | ) edition.cnn.com time to read: +3 min

Washington, DC CNN —With inflation continuing to slow, US consumers are taking notice — and they’re feeling more optimistic. That was due to inflation’s steady retreat in recent months and consumers feeling more cheery about the economy’s future. Consumers’ economic outlook for the year ahead jumped 28% over last month. More action from the Fed is centered on core inflation remaining stubbornly high and not decelerating as fast as the headline number. The optimism reflected in the survey means US consumers have faith that inflation will eventually slow to a sustainable level, which the Fed defines as 2% inflation.

Persons: ”, Joanne Hsu, Brian Moynihan, Joe Biden’s, Jerome Powell, Powell Organizations: DC CNN, University of Michigan, Consumers, Commerce Department, Federal, Bank of America, CNN, European Central Bank, Market Committee, Fed Locations: Washington, April’s, ”

☆ US consumers' near-term inflation expectations hit two-year low; sentiment rises
▼ + stars: | 2023-06-16 | by ( Lucia Mutikani | ) www.reuters.com time to read: +3 min

Summary Consumer sentiment index rises to 63.9 in June from 59.2One-year inflation expectations drop to 3.3% from 4.2%Long-run inflation expectations dip to 3.0% from 3.1%WASHINGTON, June 16 (Reuters) - U.S. consumers' near-term inflation expectations dropped to more than a two-year low in June and the outlook over the next five years improved slightly, according to a survey on Friday that also showed sentiment perking up. "The Fed will be gratified that the surge in inflation expectations in the late-1970s and early 1980s has not been repeated," said Conrad DeQuadros, senior economic advisor at Brean Capital in New York. The University of Michigan survey's reading of one-year inflation expectations dropped to 3.3% this month, the lowest since March 2021, from 4.2% in May. The survey's preliminary reading on the overall index of consumer sentiment came in at a four-month high of 63.9 in June compared with 59.2 in May. Its measure of consumer expectations rose to 61.3 from 55.4 last month.

Persons: Conrad DeQuadros, Joanne Hsu, Robert Frick, Lucia Mutikani, Daniel Wallis, Chizu Organizations: University of Michigan's, Fed, Wednesday, Brean, The University of Michigan, Treasury, Reuters, Consumers, Navy Federal Credit Union, Thomson Locations: WASHINGTON, New York, U.S, Washington, Vienna , Virginia

☆ The Fed’s favorite inflation gauge just heated up — and that could mean another rate hike
▼ + stars: | 2023-05-26 | by ( Alicia Wallace | ) edition.cnn.com time to read: +6 min

The closely watched core PCE index — where volatile components of food and energy are excluded — unexpectedly ticked up: The Fed’s go-to gauge was up 4.7% for the year. In March, the core PCE gauge grew by 4.6%. Economists had forecast that core PCE would hold steady at 4.6%, according to Refinitiv. Consumer spending jumped 0.8% in April from March, double what economists had expected. Excluding the effects of inflation, real consumer spending increased 0.5%, reflecting a boost seen from new car purchases, according to the report.

☆ Debt ceiling worries deepen as early June U.S. default reinforced
▼ + stars: | 2023-05-12 | by ( Richard Cowan | ) www.reuters.com time to read: +6 min

The U.S. Congressional Budget Office report, issued Friday morning, confirms Treasury Secretary Janet Yellen's earlier warnings that a default could come as early as June 1. Congress' budget scorekeeper also noted that the federal government's debt payments "will remain uncertain throughout May, even if the Treasury ultimately runs out of funds in early June." She also said she remained optimistic that the debt limit problem would be resolved. A senior Treasury official told Reuters she would do that with board members of the Bank Policy Institute lobby group. Democratic Representative Abigail Spanberger said members of the U.S. Congress ought to have their paychecks withheld until the debt limit problem is resolved.

☆ American consumers are growing worried about a US debt default
▼ + stars: | 2023-05-12 | by ( Bryan Mena | ) edition.cnn.com time to read: +4 min

“If policymakers fail to resolve the debt ceiling crisis, these dismal views over the economy will exacerbate the dire economic consequences of default.”The latest survey showed that the university’s consumer-sentiment index fell by 9% in May. Monthly household spending growth tumbled to 5.4% from a revised 7.1% in December, according to the New York Fed’s Household Spending Survey, which is fielded every four months. Michigan’s report showed US household spending was flat in March from the prior month, after limping just 0.1% in February. Stack on top of that the Federal Reserve’s punishing interest-rate increases and still-high inflation, and consumers might just tap out. The Conference Board’s sentiment survey showed that consumer confidence worsened in April as Americans became more worried about the jobs market.

☆ US consumer mood darkens but banking turmoil impact limited so far, UMich says
▼ + stars: | 2023-03-31 | by ( ) www.reuters.com time to read: +2 min

The University of Michigan's monthly Consumer Sentiment Index slid to 62.0 in March from 67.0 in February and a mid-month reading of 63.4. "This month's turmoil in the banking sector had limited impact on consumer sentiment, which was already exhibiting downward momentum prior to the collapse of Silicon Valley Bank." Still, consumers had more pessimistic assessments of both their current situation and the future than they did a month ago, the survey showed. The survey also showed consumers' views of inflation over the near-term moderated further over the course of the month. One-year inflation expectations fell to 3.6% from 4.1% in February and 3.8% two weeks earlier.

☆ US consumer sentiment deteriorates in March, inflation expectations retreat
▼ + stars: | 2023-03-17 | by ( Lucia Mutikani | ) www.reuters.com time to read: +6 min

SummarySummary Companies Consumer sentiment slips in MarchInflation expectations easeManufacturing production edges up 0.1% in FebruaryWASHINGTON, March 17 (Reuters) - U.S. consumer sentiment fell for the first time in four months in March, but households expected inflation to subside over the next year and beyond, which could offer some relief to the Federal Reserve as it confronts financial market instability. The University of Michigan's preliminary March reading on the overall index of consumer sentiment came in at 63.4, down from 67 in the prior month. While the correlation between consumer sentiment and spending is weak, economists expect tighter financial conditions will undercut consumption and push the economy into recession. A separate report from the Conference Board showed its Leading Economic Index, a gauge of future economic activity, dropped for an 11th straight month in February. Durable manufacturing production nudged up 0.1%, while nondurable manufacturing output climbed 0.2%.

☆ U.S. consumer sentiment ebbs in March; inflation expectations ease
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +6 min

SummarySummary Companies Consumer sentiment slips in MarchInflation expectations easeManufacturing production edges up 0.1% in FebruaryWASHINGTON, March 17 (Reuters) - U.S. consumer sentiment fell for the first time in four months in March, but households expected inflation to subside over the next year and beyond, which could offer some relief to the Federal Reserve as it confronts financial market instability. The University of Michigan's preliminary March reading on the overall index of consumer sentiment came in at 63.4, down from 67 in the prior month. Durable manufacturing production nudged up 0.1%, while nondurable manufacturing output climbed 0.2%. Mining output fell 0.6%, with oil and gas well drilling dropping 3.1%. Industrial productionCapacity utilization for the manufacturing sector, a measure of how fully firms are using their resources, dipped 0.1 percentage point to 77.6% in February.

☆ Consumers say they’re feeling better about the economy. But they’re still planning for a recession
▼ + stars: | 2023-01-27 | by ( Alicia Wallace | ) edition.cnn.com time to read: +1 min

Minneapolis CNN —For the second month in a row, consumers said they are feeling better about the economy. The University of Michigan’s closely watched consumer sentiment index measured 64.9 for January, according to data released Friday. A separate report released earlier on Friday showed that consumers cut back on their spending in December and started stashing more in their savings as they prepare for a potential recession. Long-run inflation expectations held at 2.9%, according to the report. “Consumers continued to exhibit considerable uncertainty over both long- and short-term inflation expectations, indicating the tentative nature of any declines,” Hsu said in comments accompanying the report.

☆ U.S. consumer moods brighten to kick of 2023, inflation views down
▼ + stars: | 2023-01-27 | by ( ) www.reuters.com time to read: +2 min

Jan 27 (Reuters) - U.S. consumers entered 2023 with the most optimism in nine months, buoyed by healthy incomes and easing inflation even as most worry a recession could trip up the economy this year. The University of Michigan's Surveys of Consumers benchmark Consumer Sentiment Index rose nearly 9% to 64.9 in January - the highest since April 2022 - from a final reading of 59.7 in December. Assessments of current conditions improved sharply, rising by more than 15% to 68.4 this month, also the highest since April. Meanwhile, consumers' estimates of near-term inflation fell to the lowest since April 2021 at 3.9% for the next 12 months. Another measure of inflation favored by the Fed fell to the lowest since September 2021 in December at 5%, down from 7% in June.

☆ Consumer sentiment has perked back up to its highest level since April
▼ + stars: | 2023-01-13 | by ( Alicia Wallace | ) edition.cnn.com time to read: +1 min

Minneapolis CNN —As inflation continues its slow and steady descent, consumer sentiment is climbing back out of a trough hit last year. The University of Michigan’s closely watched consumer sentiment index rose to 64.6 in the preliminary January survey, according to data released Friday. The survey also showed consumers’ inflation expectations for this year and five years out were 4% and 3%, respectively. The year-ahead inflation expectations reading is at its lowest since April 2021. Inflation expectations are crucial data points for the Federal Reserve.

☆ Consumers are feeling slightly better about the direction of the economy
▼ + stars: | 2022-12-09 | by ( Chris Isidore | ) edition.cnn.com time to read: +2 min

New York CNN —Consumers are becoming more confident about the state of the economy, despite recession fears, soaring interest rates and continued high prices, according to the latest consumer survey from the University of Michigan. The survey’s consumer sentiment index measured 59.1 in December, up from the final reading of 56.8 in November. The November report had shown a 3.1 point decline in consumer sentiment from the previous month. Still, the reading continues to show a much gloomier outlook than a year ago, when the survey stood at 70.6. Gas prices typically have an outsized influence on consumers’ thinking about inflation since the prices are so readily apparent at every gas station.

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