Federated Hermes’ Post

The holiday season is in full swing! ❄️ In our new report, we explore how consumers are shopping, where they are spending and how inflation in shaping their habits. You can download the full report here:  https://lnkd.in/gtjesT-b

I’ve been covering U.S. markets for more than 20 years. And there’s one part of the economy that triggers more anxiety than anything else… The American consumer. I hear it every year… like clockwork. This is because personal consumption expenditures (PCE) represent an outsized portion of the country’s gross domestic product (GDP). But here’s a secret… U.S. consumer spending has set a record nearly every year since 1950. #retail #consumer #stocks https://lnkd.in/evhBsdtY

In this week's economic update: Never give up on US consumer's appetite for consumption: In a sign that consumer spending remains resilient, retail sales rose a bigger-than-expected 0.4% in September. Vehicle sales were flat, while gas station sales continued to decline, mostly reflecting lower prices. This freed up resources for other purchases, with retail sales ex-vehicles and gasoline jumping 0.7%, one of the biggest monthly gains in the past two years. There were notable gains in spending on apparel, health and personal care, miscellaneous retailers, and food services and drinking places. (Source: Ned Davis Research) https://lnkd.in/gUbruQnv A tight race is upon us: As the U.S. presidential race tightens, financial markets are reacting ahead of Election Day. Small-cap stocks and bitcoin have risen, while the Mexican peso and Treasuries have declined, reflecting a closer contest between Donald Trump and Vice President Kamala Harris. These shifts mirror earlier "Trump trades" but are also influenced by stronger economic optimism, driven by a robust jobs report and a recent 50-basis-point interest rate cut by the Fed. (Source: Reuters) https://lnkd.in/gRdwyRPD Almost a trillion dollars in just a few days: The National Retail Federation (NRF) forecasts holiday spending will reach a record $979.5 billion to $989 billion this year. This reflects up to 3.5% growth, marking the slowest pace in six years. Last year, holiday sales increased by 3.9% to $955.6 billion. E-commerce is expected to drive this growth, with online and non-store sales projected to account for $295.1 billion to $297.9 billion, up from $273.3 billion last year. (Source: Fox Business) https://lnkd.in/gyTCxWCB Make it a great week!

“The U.S. economy is primed to finish its tenth straight quarter of growth, inflation is approaching normalized levels, the unemployment rate is low, investor and consumer optimism is high, and the Federal Reserve is in the process of lowering interest rates. Pile on expectations for lower taxes, less regulation, and a growth-friendly business environment next year, and it’s not surprising that Americans are feeling pretty darn good about the future. And when Americans feel good, they generally open their wallets and spend.” – Anthony Saglimbene, Ameriprise Chief Market Strategist #TruCourseAdvisors #wealthmanagement #economy

“The U.S. economy is primed to finish its tenth straight quarter of growth, inflation is approaching normalized levels, the unemployment rate is low, investor and consumer optimism is high, and the Federal Reserve is in the process of lowering interest rates. Pile on expectations for lower taxes, less regulation, and a growth-friendly business environment next year, and it’s not surprising that Americans are feeling pretty darn good about the future. And when Americans feel good, they generally open their wallets and spend.” – Anthony Saglimbene, Ameriprise Chief Market Strategist

“The U.S. economy is primed to finish its tenth straight quarter of growth, inflation is approaching normalized levels, the unemployment rate is low, investor and consumer optimism is high, and the Federal Reserve is in the process of lowering interest rates. Pile on expectations for lower taxes, less regulation, and a growth-friendly business environment next year, and it’s not surprising that Americans are feeling pretty darn good about the future. And when Americans feel good, they generally open their wallets and spend.” – Anthony Saglimbene, Ameriprise Chief Market Strategist

“The U.S. economy is primed to finish its tenth straight quarter of growth, inflation is approaching normalized levels, the unemployment rate is low, investor and consumer optimism is high, and the Federal Reserve is in the process of lowering interest rates. Pile on expectations for lower taxes, less regulation, and a growth-friendly business environment next year, and it’s not surprising that Americans are feeling pretty darn good about the future. And when Americans feel good, they generally open their wallets and spend.” – Anthony Saglimbene, Ameriprise Chief Market Strategist

“The U.S. economy is primed to finish its tenth straight quarter of growth, inflation is approaching normalized levels, the unemployment rate is low, investor and consumer optimism is high, and the Federal Reserve is in the process of lowering interest rates. Pile on expectations for lower taxes, less regulation, and a growth-friendly business environment next year, and it’s not surprising that Americans are feeling pretty darn good about the future. And when Americans feel good, they generally open their wallets and spend.” – Anthony Saglimbene, Ameriprise Chief Market Strategist

“The U.S. economy is primed to finish its tenth straight quarter of growth, inflation is approaching normalized levels, the unemployment rate is low, investor and consumer optimism is high, and the Federal Reserve is in the process of lowering interest rates. Pile on expectations for lower taxes, less regulation, and a growth-friendly business environment next year, and it’s not surprising that Americans are feeling pretty darn good about the future. And when Americans feel good, they generally open their wallets and spend.” – Anthony Saglimbene, Ameriprise Chief Market Strategist

“The U.S. economy is primed to finish its tenth straight quarter of growth, inflation is approaching normalized levels, the unemployment rate is low, investor and consumer optimism is high, and the Federal Reserve is in the process of lowering interest rates. Pile on expectations for lower taxes, less regulation, and a growth-friendly business environment next year, and it’s not surprising that Americans are feeling pretty darn good about the future. And when Americans feel good, they generally open their wallets and spend.” – Anthony Saglimbene, Ameriprise Chief Market Strategist