Travel within China saw a notable increase on the first day of a major public holiday, with rail and car journeys accounting for the majority of trips. However, consumer spending on travel remains subdued, leading to concerns about the pace of economic recovery. The decline in domestic airline fares and the preference for driving over flying indicate that travelers are adjusting to the economic constraints.
US President Joe Biden has attributed India’s economic struggles to its reluctance to accept immigrants. According to Biden, xenophobia, or a fear of foreigners, is hindering the growth of India and other nations, while immigration has fueled the economic prosperity of the United States. The US has since clarified Biden’s remarks, stating that he was emphasizing the role of immigrants in strengthening the US economy.
The fight against inflation has been going well for the Federal Reserve and economy, but small business owners remain unconvinced about the progress being made. A recent CNBC|SurveyMonkey Small Business Survey found that only 24% of small business owners believe inflation has reached a peak, while 75% expect it to continue rising. This frustration is reflected in a decline in small business confidence in the Fed, with only 31% of business owners now saying they have confidence in the central bank.
Despite a positive market reaction to Fed Chair Powell’s comments after the FOMC meeting on Wednesday, in which he all but ruled out another rate hike this year, small business confidence in the Fed has declined. Last quarter, a little over one-third (35%) of business owners said they had confidence in the Fed. That’s not fallen back to 31%, where it was in Q2 of last year.
Inflation remains a top concern for small businesses, even as the overall economy remains strong. Over one-quarter (27%) of business owners describe the economy as “excellent or good,” which has not trended lower even as inflation fears have picked back up. It’s also notably up from 21% in the year-ago quarterly survey.
The CNBC|SurveyMonkey Small Business Confidence Index was unmoved quarter-over-quarter, at 47 out of 100, and up one point from Q2 of last year. The data is consistent with other recent small business survey findings, with both the Goldman Sachs’ 10,000 Small Businesses Voices survey and the CNBC survey finding that a majority of small business owners are facing inflationary pressures. Inflation will loom large in how America’s small business owners tilt in the presidential election. Inflation is the No. 1 issue over which small business owners say they will vote, with 63% of survey respondents citing it, followed by economic growth at 61%.
CNBC’s Jim Cramer advised investors to trust Federal Reserve Chair Jerome Powell’s assurance that a rate hike is unlikely despite lingering inflation concerns. While Powell’s remarks soothed Wall Street, Cramer anticipates investor anxiety ahead of Friday’s employment data, which will offer insights into the economy’s health. Cramer emphasized Powell’s consistent stance on interest rates, expressing confidence that he will prevent an economic recession. Additionally, the Fed’s decision to slow bond sales and Powell’s dismissal of stagflation fears were seen as positive signs by Cramer.
A recent Gallup poll reveals that a growing number of Americans are concerned about the state of the economy, which has surpassed immigration as the top issue of concern. Seventeen percent of respondents rated the economy as the country’s primary problem, with concerns rising steadily over the past few months. This trend comes ahead of the presidential election in November, where the economy is expected to play a significant role in determining the outcome. President Biden has highlighted economic growth but faces persistent concerns among Americans, especially in key battleground states. Immigration remains a significant concern for 27% of Americans, despite a decline in illegal border crossings. The poll also suggests that Republicans are more likely to view immigration as a top issue than Democrats. Other concerns include the government, with 20% of respondents ranking it as the country’s primary problem.
The economy has become a central concern for Americans, with inflation, healthcare costs, and federal spending ranking among the top issues. According to a Gallup poll, 55% of Americans are deeply concerned about inflation, signaling its potential impact on the 2024 election. Comparing the economic performance under President Biden and former President Trump, analysts highlight the strength of Trump’s policies in contrast to the struggles faced by Biden.
Saudi Arabia’s economy minister, Faisal Al Ibrahim, has rejected reports that the kingdom’s $1.5 trillion NEOM megaproject is reducing its plans. Al Ibrahim stressed that all projects are progressing according to schedule, but decisions are being made with consideration for optimal economic impact. The minister emphasized that the project’s scale remains unchanged, despite reports that The Line project would be significantly reduced in size. NEOM, part of Saudi Arabia’s Vision 2030 initiative, aims to diversify the economy and attract investors with innovative projects.
Despite the Biden administration’s claims of economic success, data shows a staggering decline in full-time jobs. From November 2023 to March 2024, over 1.7 million full-time jobs have vanished, marking the largest five-month drop since the Great Recession in 2009. The Biden administration’s boastful claims about job creation are misleading, as most jobs were recovered from COVID-19 lockdowns and not newly created. Compared to pre-pandemic levels, only a meager 2.98 million jobs have been added under Biden’s tenure, falling short of his predecessors. Meanwhile, Biden’s policies of government expansion, tax increases, and regulations have stifled economic growth and fueled inflation, leaving Americans struggling with rising costs of living.
U.S. stocks finished with a mixed performance on Wednesday as the momentum eased after sharp movements. The S&P 500 remained nearly unchanged, while the Dow Jones Industrial Average slightly declined. On the other hand, the Nasdaq composite managed to edge higher. Tesla’s jump of 12.1%, driven by plans for affordable vehicle production, overshadowed its 55% profit drop. Focus remains on the “Magnificent Seven” stocks’ earnings reports, with the hope of broader profit growth. A strong economy may support corporate profits, but rising Treasury yields continue to exert pressure on stock prices.
World Economic Forum President Brende praised India’s financial policies and its remarkable progress in eradicating poverty, comparing it to China’s economic growth. He believes India is poised to become a $10 trillion economy within the next decade, lifting millions more people out of poverty and providing increased job opportunities. Brende also emphasized the need to prioritize investment in education, reduce red tape, and continue economic reforms to facilitate seamless economic development.
