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 on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
