Recently, the Conference Board did a consumer confidence index and saw a decline in confidence for the month of November. This would mark the third month in a row in which we have seen this decline. The reason for this decline is coming from fear from a global shutdown and a continued trade war. If these trade wars are not solved in the near future and we continue a decline of consumer confidence, how detrimental do you think this will be in the grand scheme of our economy?
https://www.wsj.com/articles/u-s-consumer-confidence-declined-in-november-11574782427
I believe there is some optimism among U.S. China relations. As the two major global begin to work out deals business confidence has started to rise. Hopefully investment will fall suit and the economy will not experience another recession.
ReplyDeleteThe Trade war has caused a significant amount of uncertainty for companies with global manufacturing networks. There have been increasing tariffs, regulations, and other barriers which have caused many trade tensions. As Prof Skosples mentioned in class one day, I would not be surprised if the Trade Wars come to an end as elections come upon us. I feel as though the Trade War will become a political move.
ReplyDeleteThe decline in consumer confidence can be attributed to the trade uncertainty with China, and declining business investment. These factors along with pessimistic news outlets may have caused consumers to not be so sure about the future of the economy. However, this is the holiday season, and regardless of our future expectations, consumers will still spend money. We can predict at least a slight increase in growth and a raise in CC.
ReplyDeleteThe fear of a looming recession and the prolonged Chinese-American trade war will continue to damage American and global consumer confidence in the near future. The prolonged period of economic uncertainty has the potential to further slow American economic growth, so maintaining and improving consumer confidence is a necessary prerequisite for a period of improved economic growth . Consumer confidence and the American economy should see some positive growth though with the upcoming holiday period.
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