WASHINGTON (AP) — It’s a trend that has surprised many: Why, despite being squeezed by high prices, have Americans kept spending at retail stores and...
WASHINGTON — It’s a trend that has surprised many: Why, despite being squeezed by high prices, have Americans kept spending at retail stores and restaurants at a robust pace?
“It speaks to the ongoing strength of those Americans, which is still carrying overall spending,” said Michael Pearce, deputy chief U.S. economist at Oxford Economics. “Middle- and high-income households have been fueling the strong demand for retail goods,” Fed economist Sinem Hacioglu Hoke and two colleagues wrote.
As a result, for the lowest-income one-fifth of Americans — those earning less than $28,000 — the share of their spending on discretionary items fell 2.5 percentage points by the second quarter of this year compared with 2019. It also declined for the second-lowest one-fifth of households and for the middle fifth. But for the wealthiest one-fifth, the share of their spending on discretionary purchases actually increased.
Dynan and Pearce say they're optimistic that consumers overall — including lower-income ones — will keep spending in the coming months as inflation-adjusted incomes keep rising, restoring more of Americans' purchasing power. As the French CAC 40 Index shows modest gains amid broader European market optimism, attention is turning to smaller, lesser-known stocks that could offer unique opportunities in a dynamic economic landscape. In this context, identifying promising companies involves assessing their resilience and potential for growth despite prevailing economic challenges.The United Kingdom market has experienced a positive trend, rising 1.
Consumer Spending Michael Pearce Stock Market Retail Stores Retail Spending Helaine Rapkin
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
‘Your vote can make the difference’: parties mobilize thousands of Canada-based Americans to v ...The Hill Times
Read more »
Zelensky asks for green light to fire U.S.-made missiles at Russia in visit to WashingtonRequest comes as support for Ukraine becomes increasingly divisive issue in close presidential race
Read more »
Presidents Cup Live Blog: Americans holding early edgeAfter a rainy start to festivities at Royal Montreal Golf Club, Round 1 of the 2024 Presidents Cup begins with five four-ball matches. Follow all of the action with TSN's Live Blog or watch coverage LIVE NOW on TSN1/4, TSN.ca, and the TSN App.
Read more »
Grand Forks, B.C., remains on alert due to Washington State wildfireGRAND FORKS, B.C. — The wildfire that prompted a now-rescinded evacuation order for the community of Grand Forks, B.C., has grown to about four square kilometres in size.
Read more »
The number of Americans filing for jobless aid falls to lowest level in 4 monthsThe number of Americans applying for unemployment benefits last week fell to the lowest level in four months. The Labor Department reported Thursday that applications for jobless claims fell by 4,000 to 218,000 for the week of Sept. 21.
Read more »
1 in 4 Americans struggle with housing costs: Census BereauThe persistent challenge of affordability in the housing sector has left many Americans questioning their ability to purchase a home. Yahoo Finance Housing...
Read more »