Consumers are spending up a storm — and spending down their savings

May 27, 2022
Even though they're pessimistic about the economy and economists worry about a recession.
Americans are spending more money than they've got coming in each month.
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Consumers have shifted spending away from goods and toward services

May 26, 2022
But they'll shift back when goods they want — like cars — become available.
Consumers experiencing economic difficulties may cut back on expenses like dining out, says Washington Post personal finance columnist Michelle Singletary.
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Retailers bulked up their inventories during the worst of the pandemic. Now they're stuck with them.

May 19, 2022
Big stores like Walmart and Target didn't foresee consumers pivoting away from shopping and toward going out.
Large retailers like Target and Walmart stocked up on goods — like office furniture or home decor — that shoppers bought during the pandemic. But consumers' spending habits are changing.
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When it comes to inflation measures, the Federal Reserve prefers the PCE

Apr 29, 2022
For monetary officials, the personal consumption expenditures gauge beats the CPI. A trip to the grocery store helps explain why.
When pressed about fighting inflation, survey participants say they want to hold the line on prices for essentials, says Eric Plutzer of the McCourtney Institute for Democracy. But "those policies require the Congress and the president to work together."
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Traders are looking to the earnings reports of tech giants, like Apple and Amazon, to see how consumers are feeling and spending.
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Why inflation hits harder, depending on who you are

Apr 25, 2022
People who spend a bigger chunk of their budget on gas and groceries are disproportionately impacted by rising prices.
We all have our own personal inflation rate, depending on what we buy. Above, a shopper at a grocery store in Los Angeles.
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Could Netflix queue up a hint on how inflation can alter our behavior?

We spoke to Michael Hewson, chief market analyst at CMC Markets, for some insight.
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For public good, not for profit.

Many Americans are still concerned about getting COVID-19

Apr 7, 2022
But that's not stopping many consumers from getting out to restaurants or shopping malls.
Polling data shows that while Americans have become a lot more comfortable going out in public, COVID-19 worries still have an effect on the economy.
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If consumer sentiment is down, why has consumer spending remained strong?

Mar 11, 2022
Wage growth, low unemployment and pent-up demand when COVID case counts decline may help explain the disconnect.
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Inflation's already increasing the cost of goods. The cost of services could be next.

Feb 22, 2022
The services sector has been feeling the pinch of higher costs, particularly when it comes to wages.
Wages for workers in service industries like catering and child care have gone up in the tight labor market.
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