By Matt Ott
U.S. consumer confidence rose in October after three straight declines as the public's anxiety about the delta variant of the coronavirus appears to have abated.
The Conference Board reported Tuesday that its consumer confidence index rose to a reading of 113.8 in October, up from 109.8 in September.
Consumer spending makes up about 70% of all economic activity in the U.S., so economists pay close attention to the numbers for a better idea of what’s to come for the national economy.
Consumers' view of the present situation rose to a reading of 147.4 from 144.3, while the future expectations index climbed to 91.33 from 86.7.
In addition to the delta variant, short-term inflation concerns rose to a 13-year high, but the impact on confidence was muted, said Lynn Franco, senior director of economic indicators at the Conference Board.
The Conference Board's most recent survey indicates that the proportion of consumers who plan to purchase homes, automobiles, and major appliances all increased in October, a sign that consumer spending will continue to support economic growth through 2021. Almost half of respondents said they intend to take a vacation within the next six months. That's the highest since February 2020, right before the pandemic ravaged the global economy.
The October increase in consumer confidence surprised analysts, who had broadly expected a fourth straight decline.
Earlier this month, the Labor Department reported another jump in consumer prices in September that sent inflation up 5.4% from where it was a year ago. That matched the largest increase since 2008 as snarled global supply chains continue to create havoc.
Last week, Federal Reserve Chair Jerome Powell said tangled supply chains and shortages that have hamstrung the U.S. economy since summer have gotten worse and will likely keep inflation elevated well into 2022.
How those factors have played into July-through-September quarter will be more evident on Thursday when the government releases its first look at economic growth, as measured by the gross domestic product, for the third quarter. Economists are forecasting GDP grew at an annual rate of around 3% in the third quarter, a marked slowdown from growth rates of 6.1% in the first quarter and 6.7% in the second quarter.
The nation’s business economists are slightly less optimistic about growth prospects over the next year, noting a number of threats ranging from the previously mentioned inflation, COVID-19 and snarled supply chains.
The National Association for Business Economics released a new report Monday that found 66% of NABE members responding to a survey expect the economy to grow by 3% to 5.9% over the next year while 28% were less optimistic, pegging growth over the next year at a far slower 0.1% to 2.9%.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
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Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.
