"Wall Street remains optimistic about avoiding recession, but consumer confidence is sliding, with the Conference Board's Expectations Index falling further into recessionary territory in September. Confidence in business conditions and job availability has weakened sharply, raising concerns that the spending power underpinning corporate growth could falter. While inflation expectations eased slightly, they remain elevated, and economists warn the looming government shutdown could further obscure the economic picture by halting key data releases."
"Wall Street is largely convinced that the American economy will avoid a recession, with stocks climbing higher week-after-week thanks to this optimism. Yet consumers on the ground are looking increasingly shaky, pushing confidence barometers into unhealthy territory. A few times this year recession indicators have flashed a warning. The yield curve inverted and then promptly righted itself. And the White House's tariff plans led the likes of JPMorgan's Jamie Dimon to warn economic contraction can't be taken off the table."
Wall Street remains confident the US will avoid a recession, supporting ongoing stock gains, while consumer confidence is deteriorating. The Conference Board Expectations Index fell to 73.4, below the 80 recession-warning benchmark. The Consumer Confidence index dropped to 94.2 in September from 97.8, and the Present Situation Index fell seven points to 125.4, both measured against a 1985 100-point benchmark. Inflation expectations eased slightly but remain high. Yield-curve signals and tariff concerns have intermittently flagged recession risk. A potential government shutdown could halt key economic data, further clouding the outlook and threatening consumer-driven spending.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]