Latest news with #ConsumerConfidenceIndex
Fibre2Fashion
a day ago
- Business
- Fibre2Fashion
Japan's consumer sentiment hits 32.8 in May; Inflation fears persist
Japan's Consumer Confidence Index climbed to 32.8 in May 2025, up 1.6 points from April, according to the latest government survey by the Cabinet Office, Government of Japan. Japan's Consumer Confidence Index rose to 32.8 in May 2025, up 1.6 points from April, with all sub-indices showing gains. Livelihood, income growth, employment, and willingness to buy durable goods all improved. Inflation expectations remain high, with 93.6 per cent expecting prices to rise. The survey covered 8,400 households with a 72.4 per cent response rate. The survey, conducted across 8,400 households, showed improvements across all categories. The index for overall livelihood increased by 2.9 points to 30.2, the income growth index edged up by 0.8 points to 38.3 and confidence in employment rose by 1.6 points to 37.3. The willingness to buy durable goods also improved, rising by 1.2 points to 25.4, though it remains the weakest among the sub-indices. Meanwhile, inflation expectations remain strong. A record 93.6 per cent of respondents anticipate prices will rise over the next year, up 0.4 percentage points from April. Only 2.2 per cent expect prices to fall. The survey had a 72.4 per cent response rate. Fibre2Fashion News Desk (HU)
Yahoo
3 days ago
- Business
- Yahoo
Consumer Confidence Surges in May: ETFs to Gain
Consumer sentiment got a strong boost in May, thanks to optimism over easing trade tensions between the United States and China. According to a survey released on May 27, 2025 by The Conference Board, the Consumer Confidence Index jumped to 98.0, marking a 12.3-point increase from April. This figure also far exceeded the Dow Jones consensus estimate of 86.0, as quoted on CNBC. The primary driver of the surge was the progress in U.S.-China trade negotiations. President Donald Trump's decision on May 12 to halt severe tariffs appears to have reassured consumers. The May uptick follows five consecutive months of declining consumer confidence, a trend fueled by the escalating trade war initiated by President Trump. China was a key focus of U.S. tariff actions until both sides reached a temporary truce in early May. Other components of the survey also showed improvement. The Present Situation Index climbed to 135.9, up 4.8 points. The Expectations Index surged to 72.8, an increase of 17.4 points. Investor sentiment improved as well, with 44% now expecting stock prices to rise over the next 12 months, compared to 37.6% in April. Perceptions of the labor market also improved: about 19.2% of respondents expect more job availability in the next six months (up from 13.9%). Those expecting fewer jobs fell to 26.6% (from 32.4%). A slightly increased 31.8% said jobs are 'plentiful.' Against this backdrop, both consumer discretionary and staples-based exchange-traded funds (ETFs) should benefit. These ETFs include Consumer Discretionary Select Sector SPDR Fund XLY, Vanguard Consumer Discretionary ETF VCR, Fidelity MSCI Consumer Discretionary Index ETF FDIS, SPDR S&P Retail ETF XRT, Consumer Staples Select Sector SPDR Fund XLP, iShares U.S. Consumer Discretionary ETF IYC and iShares U.S. Consumer Staples ETF IYK. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Consumer Staples Select Sector SPDR ETF (XLP): ETF Research Reports SPDR S&P Retail ETF (XRT): ETF Research Reports Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports iShares U.S. Consumer Staples ETF (IYK): ETF Research Reports Fidelity MSCI Consumer Discretionary Index ETF (FDIS): ETF Research Reports iShares U.S. Consumer Discretionary ETF (IYC): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
3 days ago
- Business
- Yahoo
Macy's Shoppers Are Buying Pricey Items, but the Retailer Doesn't Expect That To Last
Macy's customers have been buying fine jewelry, mattresses, and other "big-ticket" home-furnishing items, but the retailer is unsure how much of this shift is due to consumers wanting to get ahead of tariff-fueled price increases. Consumer sentiment has been relatively weak, but Macy's and Wells Fargo executives said they have yet to notice a significant shift in customer behavior. Nonetheless, both Macy's and Wells Fargo are planning for softer consumer spending in the remainder of the are snapping up bling and bedding again, Macy's executives (M) say. Big-ticket items, including mattresses and fine jewelry, have been selling well, Macy's CEO Tony Spring said during a first-quarter earnings call Wednesday. Americans aren't spending dramatically less despite economic sentiment deteriorating in recent months, he said, echoing other executives and economists. Still, the company behind Macy's, Bloomingdale's, and Bluemercury is bracing for a behavioral shift over the rest of the year. Watches, jewelry, mattresses, sheets, and other 'big-ticket' home-furnishing sales were relatively strong in the latest quarter, Spring said, adding that it was unclear how much of the demand was fueled by the fear that prices will rise under tariffs. 'It's hard to say what part is pull forward,' Spring said, describing forces fueling shoppers' recent buying amid threats of tariffs, according to a transcript made available by AlphaSense. 'Maybe that's a part of some of the growth we've seen in fine jewelry, for instance, maybe some of the big-ticket areas." Demand continues to outstrip readings of weakening consumer sentiment, Spring said. That disconnect has been highlighted by a number of executives, including Wells Fargo (WFC) CEO Charlie Scharf. Consumer sentiment improved in May but previously fell for five months in a row, according to the Conference Board's Consumer Confidence Index. 'We do see less spend on travel, but you see more spend in other categories,' Scharf said at a conference Wednesday. 'And the overall level of debit and credit card spend has been roughly the same.'This consistency in spending 'says consumers haven't changed behavior dramatically at this point,' Scharf continued, adding that Wells Fargo is planning for 'a slight worsening' in consumer spending. Macy's executives also said they expect that sales will soften and retailers will ramp up promotions to compete for customers over the course of the year. The retailer expects comparable sales to be down 0.5% to 2% for the full fiscal year, when looking at digital sales and Macy's locations receiving investment that are not being considered for closure, according to its earnings presentation. Macy's reduced its anticipated earnings per share for the year, now forecasting adjusted results in the range of $1.60 to $2, rather than the $2.05 to $2.25 seen in early March. Read the original article on Investopedia
NBC News
3 days ago
- Business
- NBC News
Mortgage rates rose to the highest level since January, but demand from homebuyers still grew. Here's why.
Mortgage rates rose for the third straight week last week to the highest level since January, but some homebuyers were undeterred. Mortgage applications to purchase a home climbed 2% compared with the previous week and were 18% percent higher than the same week one year ago, according to the Mortgage Bankers Association's seasonally adjusted index. This as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, increased to 6.98% from 6.92%, with points decreasing to 0.67 from 0.69, including the origination fee, for loans with a 20% down payment. 'Purchase applications were up over the week and continue to run ahead of last year's pace as increased housing inventory in many markets has been supporting some transaction volume, despite the economic uncertainty,' said Joel Kan, an MBA economist. Applications to refinance a home loan took the rate increase harder, falling 7% for the week. Refinance demand was, however, still 37% higher than the same week one year ago. 'Conventional refinances were down 6%, and VA refinances dropped 16%,' added Kan. Mortgage rates edged slightly lower to start this holiday-shortened week, after a monthly report on consumer confidence. 'The Consumer Confidence Index was stronger than expected, but one of its components raised concern over the labor market,' wrote Matthew Graham, chief operating officer at Mortgage News Daily. 'Weaker labor conditions tend to push rates lower, all else equal. The underlying bond market improved after that and several mortgage lenders issued revised rates in response.'
CNBC
3 days ago
- Business
- CNBC
Mortgage rates rose to the highest level since January, but demand from homebuyers still grew. Here's why.
Mortgage rates rose for the third straight week last week to the highest level since January, but some homebuyers were undeterred. Mortgage applications to purchase a home rose 2% compared with the previous week and were 18% percent higher than the same week one year ago, according to the Mortgage Bankers Association's seasonally adjusted index. This as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, increased to 6.98% from 6.92%, with points decreasing to 0.67 from 0.69, including the origination fee, for loans with a 20% down payment. "Purchase applications were up over the week and continue to run ahead of last year's pace as increased housing inventory in many markets has been supporting some transaction volume, despite the economic uncertainty," said Joel Kan, an MBA economist. Applications to refinance a home loan took the rate increase harder, falling 7% for the week. Refinance demand was, however, still 37% higher than the same week one year ago. "Conventional refinances were down 6%, and VA refinances dropped 16%," added Kan. Mortgage rates edged slightly lower to start this holiday-shortened week, after a monthly report on consumer confidence. "The Consumer Confidence Index was stronger than expected, but one of its components raised concern over the labor market," wrote Matthew Graham, chief operating officer at Mortgage News Daily. "Weaker labor conditions tend to push rates lower, all else equal. The underlying bond market improved after that and several mortgage lenders issued revised rates in response."
