U.S. consumer confidence declined in August by less than forecast as Americans’ assessment of current conditions climbed to the highest level in almost 19 years, helped by a job market that remains robust. The graph in the article shows that the view of the present situation index jumped to 177.2, the highest since November 2000. The reading shows hiring and income gains are keeping consumers upbeat and slowing concerns about the economy’s prospects in light of slowing global growth, volatile financial markets and escalating U.S.-China trade tensions. The level of confidence could allow for sustained household spending that remains a mainstay of the economy. Some parts of the economy are showing some weakening but consumers are confident and willing to spend. As college students, what are your thoughts on the current conditions of the economy? Are you confident in spending as a consumer?
https://www.bloomberg.com/news/articles/2019-08-27/u-s-consumer-confidence-declined-less-than-forecast-in-august
Speaking as a college student, I feel that the current condition of the economy is fine. However, while it may be fine right now I am more worried about the future. There is all this talk about what the inverted yield curve is representing. A recession right after graduation is a tough way to start a career path. Hopefully all of the other positives in the economy right now will be enough to outweigh the inverted yield curve.
ReplyDeleteComing from the perspective of a college student I think the most important indicator currently is the unemployment rate which is at a very low 3.7% currently. With the fear of a recession looming,
ReplyDeleteI can only hope that the jobs are still available as they currently are upon my graduation in 2021.
While there has been increased consumer confidence, due to the presence of an inverted yield curve, a recession could be looming. In the second quarter, real GDP was only at 2.0%. This is far below the ideal percentage of around 3.3%. Although consumer confidence is at one of its highest points in recent year, the lack of real economic growth is still troublesome.
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