jetcityimage/iStock Editorial via Getty Images
A Bloomberg poll found that Americans expect personal consumption to shrink in 2024 for the first time since the pandemic began. Goldman Sachs economists feel otherwise.
More than half of 526 respondents agreed on the outlook, while 21% said personal consumption will drop before then, Bloomberg’s latest Markets Live Pulse survey found. The poll was taken between September 4 and 8.
Meanwhile, Goldman Sachs expects consumers to outperform next year and sustain economic growth thanks to steady job growth and pay hikes that are beating inflation, Bloomberg reported. Economic growth is expected to accelerate because of household spending that jumped in July by the most in six months, according to Bloomberg.
Consumers are facing higher interest rates and lower savings as inflation persists. But they still seem resistant.
In July, consumer credit rose by $10.40B vs. $16B expected and $14.02B in June.
In an interview with Bloomberg, Treasury Secretary Janet Yellen said she is more confident of the U.S. economy achieving a soft landing after recent data showed a steady cooling of inflation and an increase in jobseekers.
“Every measure of inflation is on the road down,” Yellen said.
Walmart (NYSE:WMT), The Procter & Gamble Company (PG), The Coca-Cola Company (KO), Amazon.com (AMZN) and Tesla (TSLA) were all trading higher on Monday.
More on Walmart
Source: seekingalpha.com
