Jackson Wang
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$HSI Futures(JUN4)(HSImain.HK$ back to 18000 lvl tmr..
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Jackson Wang
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Income is slowing, savings are falling, and the US consumption engine is losing momentum
The main factors underpinning the unusually strong performance of American consumers are losing momentum at the same time, indicating that the recent decline in household demand may not be one-off.
Real disposable income has increased only slightly over the past year. The savings rate is currently at a 16-month low, and most households have basically used up the extra cash they saved during the pandemic. As a result, many Americans are also increasingly dependent on credit cards and other sources of financing to support their expenses.
These factors help explain why actual spending, excluding the effects of inflation, fell in April, and consumer spending on cars, restaurants, and entertainment activities declined. As the job market is cooling down, companies like Best Buy have noticed shoppers turning to cheaper brands in recent months.
Signs of economic slowdown
“Labor market momentum is slowing and will continue to limit income growth. As savings buffers decrease and debt burdens rise, more households are beginning to restrain spending,” EY chief economist Gregory Dacko said in a report on Friday. “Household spending momentum will gradually cool down in light of increased price sensitivity.”
US consumer spending, adjusted for inflation, fell unexpectedly in April. Furthermore, the US economy's growth rate in the first quarter was lower than the initial value, providing quite convincing evidence that the US economy is breaking away from the unexpectedly strong growth pace in 2023.
There have been debates in recent weeks about whether policy interest rates, which have been high for more than 20 years, have dampened the economy as expected by the Federal Reserve, but the latest data may give Fed officials some relief.
That's why...
The main factors underpinning the unusually strong performance of American consumers are losing momentum at the same time, indicating that the recent decline in household demand may not be one-off.
Real disposable income has increased only slightly over the past year. The savings rate is currently at a 16-month low, and most households have basically used up the extra cash they saved during the pandemic. As a result, many Americans are also increasingly dependent on credit cards and other sources of financing to support their expenses.
These factors help explain why actual spending, excluding the effects of inflation, fell in April, and consumer spending on cars, restaurants, and entertainment activities declined. As the job market is cooling down, companies like Best Buy have noticed shoppers turning to cheaper brands in recent months.
Signs of economic slowdown
“Labor market momentum is slowing and will continue to limit income growth. As savings buffers decrease and debt burdens rise, more households are beginning to restrain spending,” EY chief economist Gregory Dacko said in a report on Friday. “Household spending momentum will gradually cool down in light of increased price sensitivity.”
US consumer spending, adjusted for inflation, fell unexpectedly in April. Furthermore, the US economy's growth rate in the first quarter was lower than the initial value, providing quite convincing evidence that the US economy is breaking away from the unexpectedly strong growth pace in 2023.
There have been debates in recent weeks about whether policy interest rates, which have been high for more than 20 years, have dampened the economy as expected by the Federal Reserve, but the latest data may give Fed officials some relief.
That's why...
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Jackson Wang
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$JD-SW(09618.HK$ Keep exploring... Dig, dig, dig...
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Jackson Wang
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$Hang Seng Index(800000.HK$ Between now and November, the biggest risk is whether US stocks will peak or whether they will continue to reach new highs until the US election. Also, there is the situation in the Taiwan Strait. I feel that after China and Russia are hugging closely, the US is preparing to release Taiwan, a dog that needs to buy its own dog food, and wants the mainland to take the initiative to stir up a war in the Taiwan Strait, thus reaching a comprehensive European sanction against the mainland. Of course, the mainland won't be fooled.
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Jackson Wang
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$JD.com(JD.US$
5/16 That is to say, peripheral level headless signal
5/16 That is to say, peripheral level headless signal
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Jackson Wang
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$Hang Seng Index(800000.HK$ When the national team wants you to drop
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Jackson Wang
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$Hang Seng Index(800000.HK$ After rising more than 3,600 points, there was finally a decent correction
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Jackson Wang
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Jackson Wang
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$Hang Seng Index(800000.HK$ 10am dragon wake up?
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