Consumer confidence in the US eased in June, according to the Conference Board’s index, driven by a weaker outlook for business conditions, the job market, and incomes. While current conditions remain strong, concerns about the future are growing.
Results for: Consumer Confidence
Consumer confidence in Germany has risen for the third straight month, reaching its highest level in two years. The increase, driven by rising wages and declining inflation, has led to increased purchasing power for German households. However, consumer spending remains below pre-pandemic levels due to lingering concerns about inflation and the energy crisis.
German consumer sentiment is set to rise in May, according to a new report. The increase is largely due to an improvement in income expectations, which have reached a two-year high. However, despite the improvement, consumer sentiment remains below historical levels.
The upcoming release of first-quarter real GDP growth estimates is highly anticipated by policymakers, economists, and investors. This crucial economic indicator, measured by the U.S. Bureau of Economic Analysis, provides insights into economic activity and guides financial projections. The Fed Board staff’s projections, renowned for their accuracy, heavily rely on GDP estimates for reliable advance estimates. Expectations indicate a potential GDP growth of less than 3% in Q1, driven by strong productivity growth. The March Personal Consumption Expenditure (PCE) deflator, a key inflation measure, will be revealed in the GDP report. While inflation has seen a notable rise, it remains uncertain whether it represents a sustained uptick or temporary factors. The data is expected to be released on Thursday, April 25, and will likely impact market movements. As witnessed with other labor and inflation readings, a positive GDP report could serve as a negative catalyst. As of April 16, GDPNow estimates Q1 2024 real GDP growth at 2.9%, indicating a positive outlook. Factors such as rising productivity, increased consumption expenditures, and stable residential construction contribute to optimistic forecasts. However, concerns linger about inflation, particularly the increase in PCE and CPI, prompting the delay of rate-cut expectations from May to June. Despite these concerns, the U.S. economy remains driven by its robust labor market, projecting a rise of about 2.5% this year. However, caution is advised as the growth is expected to slow to 1.8% by the end of 2024.
Consumer confidence in Australia has plunged by 3.2 points, reaching its lowest level so far this year. The latest ANZ-Roy Morgan Australian Consumer Confidence Index now stands at 80.3. Experts from ANZ attributed this sharp decline to several factors.