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☆ What higher-for-longer interest rates could mean for tech stocks
▼ + stars: | 2023-08-31 | by ( Krystal Hur | American Airlines Flight Attendants Vote To Authorize A Strike | ) edition.cnn.com time to read: +5 min

CNN —After roaring higher for most of this year, the rally in tech stocks sputtered in August as investors grew increasingly worried about how long the Federal Reserve will keep interest rates high. Strong economic data in recent months has investors betting that the Fed will keep interest rates higher for longer. Higher yields also mean companies will need to pay more interest on their debt in the future, eating into future cash flows. Sustained, lofty yields could particularly pose a problem for tech stocks, which often trade at a premium because of the promise of rapid growth. Any sell-off in tech could reverberate across the broader market, since those stocks are largely responsible for propelling this year’s rally.

Persons: Ivana Delevska, Spear, Bryan Mena, CNN’s Gregory Wallace, Julie Hedrick, “ We’re, Read Organizations: CNN Business, Bell, CNN, Federal Reserve, Treasury, Nvidia, Devices, Marvell Technology, Gross, Commerce, American Airlines, Association of Professional, Airline

☆ US second-quarter economic growth revised lower as inventories drop
▼ + stars: | 2023-08-30 | by ( Lucia Mutikani | ) www.reuters.com time to read: +5 min

Economists polled by Reuters had expected GDP for the second quarter would be unrevised. Inventories were a small drag to GDP growth instead of adding 0.14 percentage point as estimated last month. It is expanding at a pace well above what Fed officials regard as the non-inflationary growth rate of around 1.8%. GDPINFLATION COOLINGThe government's measure of inflation in the economy, the price index for gross domestic purchases, rose at a 1.7% rate, revised down from the 1.9% rate estimated last month. An alternative measure of growth, gross domestic income, or GDI, rebounded at a 0.5% rate in the second quarter.

Persons: Elizabeth Frantz, Lydia Boussour, Lucia Mutikani, Chizu Nomiyama, Paul Simao Organizations: REUTERS, Commerce Department, Wednesday, Federal Reserve, Gross, Reuters, Fed, ADP, Thomson Locations: Arlington , Virginia, U.S, WASHINGTON, EY, New York

☆ The US economy grew more slowly in the second quarter than previously estimated
▼ + stars: | 2023-08-30 | by ( Bryan Mena | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —The US economy grew more slowly in the second quarter than previously estimated — a good sign for the Federal Reserve, which is attempting to cool demand to bring down price increases. Gross domestic product, the broadest measure of economic output, rose at an annualized rate of 2.1% in the second quarter, according to the Commerce Department’s second estimate, released Wednesday morning. The second estimate factored in greater consumer spending, government outlays and exports, compared with the initial estimate. Economic growth in the second quarter was mostly broad based, but there were some signs of weakened demand for goods purchases and imports. Consumer spending, which accounts for about 70% of economic output, was revised slightly higher in the second estimate.

Persons: ”, Bill Adams, Barbie, Taylor Swift, Jerome Powell, ” Powell, Biden, Lydia Boussour, “ Organizations: DC CNN, Federal Reserve, Gross, Commerce, Consumer, Comerica Bank, The Commerce Department, Kansas City, Atlanta Fed, Fed Locations: Washington, United States, Wells Fargo, EY

☆ Biden takes his reelection pitch to Wisconsin, a state Republicans are wooing in 2024
▼ + stars: | 2023-08-15 | by ( Emma Kinery | ) www.cnbc.com time to read: +3 min

President Joe Biden spoke in Milwaukee, Wisconsin on Tuesday, a week before Republicans meet there for their first presidential debate. "Look folks, it's really kind of basic: We just decided to invest in America once again," Biden said in Wisconsin. Wisconsin is a key battleground state that Biden won in 2020, but which former President Donald Trump won in 2016. In an unusual move, the Biden reelection campaign also issued a statement on his Wisconsin trip, criticizing Republicans' track record in the state. Biden spoke with Hawaii Governor Josh Green and FEMA Administrator Deanne Criswell on the plane ride to Wisconsin.

Persons: Joe Biden, Biden, Olivia Dalton, Donald Trump, Trump, MAGA, Kevin Munoz, Dalton, Jill, we've, I've, Josh Green, Deanne Criswell Organizations: White, House, Wisconsin, Biden, Hawaii, FEMA Locations: Delaware, Washington , U.S, Milwaukee , Wisconsin, Wisconsin, America, Ingeteam, Milwaukee, Hawaii, Maui

Official data on Friday showed the economy grew 0.2% in the second quarter, against the consensus for a flat reading in a Reuters poll of economists. The strong showing bolstered bets that the BoE would keep on raising interest rates, given the central bank stressed this month that resilience in the economy was one of the factors that would underpin its judgement. The central bank itself had pencilled in growth of 0.1% for the second quarter. "With much of the drag from higher interest rates still to come, we are sticking to our below-consensus forecast that the UK is heading for a mild recession later this year," said economist Ruth Gregory from consultancy Capital Economics. Reporting by Andy Bruce and David Milliken; editing by William James, Kate Holton and Christina FincherOur Standards: The Thomson Reuters Trust Principles.

Persons: Sterling, BoE, Neil Birrell, Jeremy Hunt, Ruth Gregory, Andy Bruce, David Milliken, William James, Kate Holton, Christina Fincher Organizations: Bank of England, U.S ., Reuters, Bank of, Miton, National Statistics, Manufacturing, Reuters Graphics, Capital Economics, Thomson Locations: Bank of England, Britain, Germany, France, Italy, United States

LONDON — The U.K. economy beat expectations with 0.2% growth in the second quarter, boosted by household consumption and manufacturing output, the Office for National Statistics said Friday. The economy expanded by 0.5% in June, beating a forecast of 0.2% growth. It follows monthly GDP growth of 0.1% in May and 0.2% in April. Output was bolstered by 1.6% growth in manufacturing and 0.7% in production in the second quarter, while services grew by 0.1%. In its most recent monetary policy report, it said it expects quarterly GDP growth to remain around 0.2% in the near term.

Persons: eking, King Charles III, Mike Coop, CNBC's, Coop, Jeremy Hunt, BoE, Ruth Gregory Organizations: National Statistics, Reuters, Bank of, ONS, Morningstar, Bank of England, of England, IMF, Finance, Capital Economics Locations: Germany, France, Italy

☆ Ahead of two key inflation reports, what would a soft landing look like exactly?
▼ + stars: | 2023-08-06 | by ( Bryan Mena | ) edition.cnn.com time to read: +8 min

But aside from simply skirting a recession, it’s not obvious what the economy would look like in a soft landing. And who even declares that the Fed has officially defied the odds and achieved a soft landing? The main aspect of a soft landing, according to economists, is the absence of a recession, which is determined by the National Bureau of Economic Research (NBER.) In a soft landing, the job market has to remain intact. The other key feature of a soft landing is for the Fed to successfully control inflation, but that’s open to some interpretation.

Persons: we’ve, ”, Kayla Bruun, “, Julia Pollak, ” Pollak, Josh Markman, cooldown, Austan Goolsbee, ” Goolsbee, Raphael Bostic, Michelle Bowman, Patrick Harker, Armour, Ralph Lauren Organizations: CNN Business, Bell, DC CNN, Federal Reserve, Bank of America, Fed, National Bureau of Economic Research, Morning, Atlanta, ZipRecruiter, Labor, Bel Air Investment Advisors, Federal, Federal Reserve Bank of Chicago, Bloomberg, Atlanta Fed, “, Tyson Foods, UPS, Fox, Restaurant Brands, The National Federation of Independent Business, US Commerce Department, China’s National Bureau of Statistics, Disney, US Labor Department, National Statistics, University of Michigan Locations: Washington

☆ Fitch downgrades U.S. long-term rating to AA+ from AAA
▼ + stars: | 2023-08-01 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Fitch Ratings downgraded the United States' long-term foreign currency issuer default rating to AA+ from AAA on Tuesday, pointing to "expected fiscal deterioration over the next three years," an erosion of governance and a growing general debt burden. U.S. stock futures opened lower after the rating agency issued its downgrade, with Dow futures sliding about 100 points. In May, the agency placed the nation's AAA rating on negative watch, blaming the debt ceiling fight. President Joe Biden signed the debt ceiling bill on June 2, just days away from the "X-date" on June 5. This isn't the first time a rating agency has downgraded the U.S. Standard & Poor's cut the nation's credit rating to AA+ from AAA in 2011 after Washington managed to avoid a default.

Persons: Biden, Fitch, Washington butted, Joe Biden, Karine Jean, Pierre said, CNBC's Christina Wilkie Organizations: Service Police, Lafayette, Fitch, United, AAA, Dow, U.S . Standard, Washington Locations: Washington , DC, United States, Washington, States

Yet a sharp drawdown in the excess savings created by COVID-19 could be a curve ball that slams into bullish sentiment. U.S. excess savings have fallen to around $500 billion from around $2.1 trillion in August 2021, the San Francisco Federal Reserve estimates. In Europe, Deutsche Bank reckons excess savings in Sweden, struggling to contain a property slump, have dwindled. Reuters GraphicsRUNNING OUTDefinitions for excess savings differ, but economists generally agree that this means savings that went beyond trend levels during the pandemic. Cardano chief economist Shweta Singh said U.S. pandemic excess savings are likely to be depleted by year-end.

Persons: Rachel Adams, Janus Henderson, Oliver Blackbourn, Shweta Singh, Guy Miller, Jamie Dimon, Ben, Eren Osman, Arbuthnot Latham, Janus Henderson's Blackbourn, U.S . Russell, Russell, Goldman Sachs, Blackbourn, Zurich's Miller, Simon Bell, Guilluame Paillat, Paillat, Naomi Rovnick, Sharon Singleton Organizations: Oxford, REUTERS, San Francisco Federal, Deutsche Bank, Reuters, Insurance Group, Ryanair, JPMorgan, Unilever, U.S ., London's, Bank of, Aviva, Thomson Locations: Britain, London, China, Europe, U.S, Sweden, United States, downturns, Australia

☆ How lip fillers and laser hair removal are plumping up private equity
▼ + stars: | 2023-07-31 | by ( Rebecca Ungarino | ) www.businessinsider.com time to read: +8 min

Sixth Street, Blackstone, and Ares have backed providers of treatments like laser hair removal. Laser hair removal, body contouring, filler injections — it's not just TikTok and Instagram where people are talking about their latest treatments. The space is another consumer-focused vertical, like dentistry and dermatology, that private equity firms, big and small, are aggressively pushing into. Christian Karavolas, who owns laser hair removal specialist Romeo & Juliette in New York City, said he's turned away offers by private equity investors. Laser hair removal, for instance, isn't considered a medical procedure in every state.

Persons: Ares, It's, Levine, Leonard Green, Blackstone, Levine Leichtman, Christian Karavolas, Juliette, he's, Karavolas, Alex Thiersch, Thiersch, Chanel, Dior, David Yurman, Louis Vuitton, isn't, Sevana Petrosian, Eva Longoria Bastón, SEV, Andrew Schwartz, Schwartz, Heravi Organizations: Sixth, Blackstone, Levine Leichtman Capital Partners, Leonard Green & Partners, Boston Consulting, Industry, KKR, SkinSpirit, Walmart, ORIX Venture Finance, TPG, General Atlantic, Wax Center, Med Spa Association, Getty, Consumers Locations: Blackstone, Milan, LaserAway, California, New York City, H.I.G, Manhattan, Burbank , California

☆ 'People give up on recession just as it arrives': Don't count out an economic downturn just yet
▼ + stars: | 2023-07-30 | by ( Matthew Fox | ) www.businessinsider.com time to read: +4 min

Despite solid economic data, some Wall Street strategists are sticking with their gloomy outlook for the economy and stocks. But don't count out a decline just yet: "People give up on recession just as it arrives." Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Société GénéraleEdwards isn't the only bear on Wall Street. And as Edwards highlighted, a decline in profits usually leads to an uptick in layoffs, which could ultimately hurl this economy into a recession.

Persons: Albert Edwards, Greedflation, Edwards, Société Générale Edwards, JPMorgan's Marko Kolanovic, Kolanovic, Morgan Stanley's Mike Wilson, Wilson Organizations: Service, Survey, Loan, Fed Locations: Wall, Silicon

☆ Businesses aren't acting like a recession is coming this year
▼ + stars: | 2023-07-30 | by ( Noah Sheidlower | Madison Hoff | ) www.businessinsider.com time to read: +7 min

Still, businesses aren't feeling too optimistic, with most still expecting a recession this year. However, big companies are hiring, businesses are expanding, and lots of entrepreneurs are filing to open new startups. This was partly due to consumers spending more and business investment being way up. The main measure of business investment in the GDP report is well above pre-pandemic levels, and shows no signs of slowing down ahead of a hypothetical recession. Businesses also aren't feeling too optimistic according to the National Federation of Independent Business' Small Business Optimism Index.

Persons: —, Gregory Daco, Daco, Jeffrey Roach, Jerome Powell, Powell Organizations: Service, Bureau, Infrastructure Investment, Jobs, US . Entrepreneurs, Economic Innovation Group, Economic, Nationwide, Edelman Data, Intelligence, National Federation of Independent Business, LPL, Federal Reserve, Fed Locations: Wall, Silicon

☆ Moderate US economic growth expected in second quarter
▼ + stars: | 2023-07-27 | by ( Lucia Mutikani | ) www.reuters.com time to read: +6 min

According to a Reuters survey of economists, GDP growth likely increased at a 1.8% annualized rate last quarter after rising at a 2.0% pace in the first quarter. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, likely remained a pillar of support, although the pace of growth slowed from the second quarter's robust 4.2% rate. Further contribution to GDP growth was expected from government spending. Inventory investment is a wild card, though most economists are penciling in a contribution to GDP growth of at least five tenths of a percentage point. Business sharply reduced inventory accumulation in the January-March quarter in anticipation of weaker domestic demand, slicing 2.14 percentage points off GDP growth that period.

Persons: Dean Maki, they're, Mike Skordeles, Joe Biden's, Sean Snaith, Richard de Chazal, William Blair, Lucia Mutikani, Andrea Ricci Organizations: Federal Reserve, Point72, Management, Labor Department, Truist Advisory Services, Investment, University of Central Florida's Institute, Economic, Fed, Thomson Locations: WASHINGTON, U.S, Stamford , Connecticut, Atlanta, United States, London

☆ US economic growth accelerates in second quarter; inflation retreats
▼ + stars: | 2023-07-27 | by ( Lucia Mutikani | ) www.reuters.com time to read: +6 min

Gross domestic product increased at a 2.4% annualized rate last quarter. Excluding food and energy, prices rose at a 2.6% pace following a 4.2% rate of increase in the first quarter. Though the pace of growth slowed from the first quarter's robust 4.2% rate, it was enough to add more than a full percentage point to GDP growth. Government spending also contributed to GDP growth. A measure of domestic demand increased at a solid 2.3% rate after surging at a 3.2% pace in the first quarter.

Persons: Amira Karaoud, Christopher Rupkey, Joe Biden's, Lucia Mutikani, Nick Zieminski, Andrea Ricci Organizations: REUTERS, Commerce, Federal Reserve, Gross, Reuters, Fed, Consumer, Labor Department, Conference, Treasury, Investment, Thomson Locations: Louisville, U.S, WASHINGTON, New York, United States

☆ The US economy grew stronger than expected in the second quarter
▼ + stars: | 2023-07-27 | by ( Bryan Mena | ) edition.cnn.com time to read: +7 min

Washington CNN —The US economy picked up steam in the second quarter despite punishing rate hikes and still-high inflation, the Commerce Department reported Thursday. Economic growth in the second quarter was driven by business investment, government purchases, inventory investment and consumer spending, though at a much weaker pace than in the first quarter. Consumer spending, which accounts for about two-thirds of economic output, grew at just a 1.6% rate in the second quarter, down sharply from a 4.2% rate in the first three months of the year. Nonresidential business investment rose sharply to a 7.7% growth rate in the second quarter, up from a 0.6% rate in the beginning of the year. The GDP report showed that spending on structure slowed to a 9.7% rate in the second quarter from a 15.8% rate in the prior one.

Persons: “, Lydia Boussour, ’, ” Shannon Seery, Seery, —, ”, Diane Swonk, Thursday’s, Carol Schleif, Jerome Powell Organizations: Washington CNN, Commerce Department, Gross, Federal Reserve, Fed, CNN, Employers, Wells, Investment Bank, Manufacturers, KPMG, restrengthens Investors, BMO Family Office, Investors, “ Locations: EY

☆ Deutsche Bank beats expectations despite 27% drop in profit, jump in costs
▼ + stars: | 2023-07-26 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

A Deutsche Bank AG branch in the financial district of Frankfurt, Germany, on Friday, May 6, 2022. Alex Kraus | Bloomberg | Getty ImagesDeutsche Bank on Wednesday reported a net profit of 763 million euros ($842 million) for the second quarter of 2023, narrowly beating expectations despite a 27% year-on-year decline. related investing news Citi downgrades Goldman Sachs, says targets will take time to be reached We're selling some shares of this health-care company and changing our rating However, second-quarter non-interest expenses rose 15% year-on-year to 5.6 billion euros, with adjusted costs up 4% to 4.9 billion euros. Nonoperating costs includes 395 million euros in litigation charges and 260 million euros in "restructuring and severance related to execution of strategy." In its first-quarter report, the bank flagged job cuts for its non-client facing staff and reported a sharper-than-expected year-on-year fall in investment bank revenues.

Persons: Alex Kraus, Citi downgrades Goldman Sachs, James von Moltke, CNBC's Silvia Amaro, von Moltke, we've Organizations: Deutsche Bank AG, Bloomberg, Getty Images Deutsche Bank, Citi, Deutsche Bank, CNBC Locations: Frankfurt, Germany

Both theory and past practice suggest that higher interest rates weigh on investment and consumption, crimping companies’ profit and forcing them to reduce hiring or lay off staff. It could also be that higher interest rates weigh on prices by pushing up borrowing costs and weakening financial markets, without requiring widespread layoffs. But economic forecasters have wrongly anticipated layoffs and higher unemployment for much of the past year. Until disinflation becomes less immaculate, the central bank has the unholy problem of choosing between lessons from history and those of the last 12 months. The U.S. unemployment rate dipped to 3.6% in June, the BLS announced on July 7.

Persons: Jerome Powell, Donald Trump, Joe Biden, Powell, There’s, Ben Winck, Francesco Guerrera, Peter Thal Larsen, Sharon Lam, Streisand Neto Organizations: Reuters, Federal Reserve, Wall, U.S, Fed, UBS –, Bank of International, Workers, United, Refinitiv, Consumer, of Labor Statistics, BLS, Thomson Locations: U.S, United States, payrolls, Washington, London

It was a paid ad by a group of high-tech companies protesting against Netanyahu's judicial policies, which analysts say have unleashed a slew of risks, both for Israel's economy and for his own political future. Israel's shekel moved on every twist and turn in parliament as efforts to reach a judicial compromise intensified and finally crashed. For now, Israel's economy is relatively robust, with growth forecast at 3% this year and unemployment at a 3.5% rate. Even if Netanyahu chooses to scrap plans for further judicial changes, damage will be hard to fix. The tech sector has a lot to lose if more controversial judicial changes come because firms need a trusted legal system to protect their intellectual property.

Persons: Netanyahu, Moody's, Benjamin Netanyahu, Israel's shekel, Morgan Stanley, Itzchak Raz, Netanyahu's, They're, Raz, Avi Hasson, Nicholas Farr, Amir Yaron, Amotz Asa, Asa, Shalom Hartman, Maayan Lubell, William Maclean Organizations: Government, Hebrew University, Israel Innovation Authority, Nation Central, Capital Economics, Analysts, Bank, Thomson Locations: JERUSALEM, Israel, Jerusalem

"Financial markets have consistently front-run the Fed ... That has already eased credit conditions and could stoke an acceleration in growth." Reuters GraphicsBALANCING RISKSIn the six weeks since their June 13-14 meeting, Fed policymakers have digested data offering a mirror image of what they faced a year ago. Signs of a slowdown are there, to be sure, and some policymakers expect more weakness is coming - an argument for caution in considering further rate increases. Still, unless there's a sharp drop in activity soon, it could mean Fed officials have underestimated the economy's strength and may become doubtful about the prospect of a continued decline in inflation. That will likely keep the door open to more rate increases - for now.

Persons: Diane Swonk, Jerome Powell, That's, Tim Duy, Duy, Powell, Howard Schneider, Dan Burns, Paul Simao Organizations: Federal, KPMG, stoke, Reuters, Fed, Atlanta Fed, SGH Macro, Thomson Locations: U.S

☆ China says two policies to support business coming soon
▼ + stars: | 2023-07-20 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +1 min

A view of high-rise buildings is seen along the Suzhou Creek in Shanghai, China on July 5, 2023. BEIJING — China's economic planner said Thursday that two new policies for supporting non-state-owned businesses will be launched soon. While it did not specify a date, the policy plans come a day after China's top party and government leadership announced lengthy "opinions" on supporting non-state-owned businesses. Business sentiment has generally soured amid lackluster economic growth after China's initial recovery from the pandemic. The two forthcoming policies will focus on promoting business investment and their overall development, Li Chunlin, deputy director of the National Development and Reform Commission, said in Mandarin, translated by CNBC.

Persons: Li Chunlin Organizations: National Development, Reform, CNBC Locations: Suzhou, Shanghai, China, BEIJING, Beijing

☆ More Brits than ever say Brexit was wrong choice: YouGov survey
▼ + stars: | 2023-07-17 | by ( ) www.reuters.com time to read: +1 min

LONDON, July 18 (Reuters) - The proportion of Britons who say Brexit was a mistake hit a new record high this month, a survey from pollsters YouGov showed on Tuesday. With few economic benefits to show for the June 2016 vote to leave the European Union, 57% of Britons said the decision to leave the European Union in 2016 was the wrong one, compared with 32% who thought it was correct. More than half - 55% - said they would vote to rejoin the EU, against 31% who said they would stay out, if a referendum were to be held today. YouGov said the results marked a "moderate shift" from January 2021, when 49% said they would vote to rejoin and 37% to stay out. The YouGov survey of more than 2,000 British people showed 63% now regard Brexit as more of a failure than a success, compared with 12% who saw it as more of a success.

Persons: Brexit, YouGov, Rishi Sunak, Andy Bruce, Andrew MacAskill Organizations: European Union, Thomson

☆ Wall Street Recession: Stock Market Crash Predictions Are Wrong
▼ + stars: | 2023-07-05 | by ( Neil Dutta | ) www.businessinsider.com time to read: +11 min

Wall Street analysts and economists have always had a tendency to fall in love with their forecasts. This stubbornness helps explain why Wall Street is having an exceptionally hard time letting go of the idea that a recession is just around the corner. Despite the year-plus in which analysts have been arguing that a recession is imminent, none of the arguments behind the predictions stand up to scrutiny. Bear growlsOver the past year, Wall Street pessimists' reasons for an approaching recession have shifted. The drag from the US housing market is fading.

Persons: doomsayers, it's, Neil Dutta Organizations: Street, Federal Reserve, Fed, Macro

☆ Battling Brexit, some British firms turn to invest in Europe
▼ + stars: | 2023-07-05 | by ( Andy Bruce | ) www.reuters.com time to read: +8 min

German data show British firms opened 170 foreign direct investment projects in Europe's biggest economy last year as companies sought a foothold in the bloc's single market. That's a far cry from the 50 enquiries from British firms - rather than projects committed - recorded by German Trade & Invest in 2015, the year before the Brexit referendum. Pro-Brexit economists say such data ignore the fact British corporate investment boomed in the years before mid-2016, and it was bound to slow. British firms are also waiting to hear how - or even if - London intends to compete with the enormous green energy and tech subsidies pitched by the United States and EU. At Farrat, the effects of Brexit are insidious, running beyond decisions over investments, said Farrell, describing a sense of unease felt towards British firms from potential foreign clients, worn down by years of political turmoil"People are nervous.

Persons: Brexit, Oliver Farrell, Andy Burnham, Burnham, it's, capitalising, Steve Connor, Connor, Jeremy Hunt, Farrell, Dave, Subrah Krishnan Harihara, Andy Bruce, William Schomberg, David Clarke Organizations: European Union, Reuters, German Trade, Invest, Organisation for Economic Co, Development, Reuters Graphics, Labour Party, EU, Creative Concern, European Commission, Manchester Chambers of Commerce, Thomson Locations: MANCHESTER, England, Britain, Manchester, Germany, English, Europe's, Netherlands, France, United States, England's, London, Birmingham, Greater Manchester, Farrat, EU, Warwick, West Midlands

☆ Consumer Spending Stalled Last Month
▼ + stars: | 2023-06-30 | by ( Ben Casselman | ) www.nytimes.com time to read: +1 min

Consumer spending slowed sharply last month — good news for policymakers worried about inflation, but also a sign that a crucial engine of the economic recovery could finally be losing steam. U.S. consumers spent just 0.1 percent more in May than the month before, the Commerce Department said Friday. Adjusted for inflation, spending in May was flat. And while the figures can bounce around from month to month, forecasters expect spending to continue to cool as rising interest rates and dwindling savings take a toll on consumers’ pocketbooks. The surprising resilience of consumer spending is a big part of the reason that the economy has so far defied predictions of a recession.

Persons: ’ Organizations: Commerce Department, Federal Reserve Locations: U.S

☆ Economic Data Points to Faster Growth Early in Year
▼ + stars: | 2023-06-29 | by ( Ben Casselman | ) www.nytimes.com time to read: +1 min

The NewsThe United States economy grew faster early this year than previously believed. That was a significant upward revision from the 1.1 percent growth rate in preliminary data released in April. (An earlier revision, released last month, showed a slightly stronger rate of 1.3 percent.) An alternative measure of growth, based on income rather than production, painted a different picture, showing that the economy contracted for the second quarter in a row. That spending, fueled by a strong job market and rising wages, helped offset declines in other sectors of the economy like business investment and housing.

Persons: ”, Gregory Daco, Ernst, Young Organizations: United, Gross, Commerce Department, EY Locations: United States

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