Consumers’ trust surveys pointed out a significant increase in uncertainty about both prices and employment perspectives.
The plans of monetary policy of the US president Donald Trumpparticularly their threats to implement generalized tariffs both friends and adversaries could Increase inflationary pressures and affect economic activity.
This was determined by a report of BCA Research which also maintains that these concerns affected investors’ confidence, with The S&P 500 falling almost 3% so far this year and briefly entering the correction territorytypically defined as a 10% drop from a recent maximum.
Consumer trust surveys indicated A significant increase in uncertainty about both prices and employment perspectivesalthough the president of the Federal Reserve, Jerome Powell, said the data could not have translated into a real expense behavior.
However, the pessimistic forecasts of retail giants such as Walmart and Target, as well as a series of other companies in sectors such as logistics and trips, suggested that “Consumer actions are beginning to converge with their words”according to BCA Research analysts led by Doug Peta.
US economy: what expectation are there
A fall in the expenditure activity of American consumers would be problematic “When many other great economies deal with little internal demand”analysts said.
In this context, the possibilities that the US falls in recession this year increased, they added, pointing out that they would also hope to see “A disproportionate impact on profits in relation to macroeconomic conditions.”
“A more severe bearish market could happen than economic conditions would justify.”analysts argued, referring to when shares prices fall 20% or more from recent maximums.
Source: Ambito
