Consumer Headwinds, China, Artificial Intelligence
August 4, 2023 | FIRESIDE CHARTS
Sentiment on the strength of the U.S. economy has improved dramatically over the past couple of months, but there may be headwinds on the horizon for U.S. consumers. Lenders are tightening credit standards while excess savings continue to fall. While the labor market remains strong, job openings are falling which may reduce employees’ bargaining power. Equity markets may be due for a pause. China’s recovery has been disappointing. Which company mentioned Artificial Intelligence the most on their earnings call?
1. While it’s still early in the quarter, the Atlanta Fed is estimating real GDP growth over 3% for the third quarter, an acceleration from the first half of the year:
Source: Federal Reserve Bank of Atlanta
2. Credit card issuers have been tightening lending standards since last year and the recent banking crisis certainly didn’t help:
Source: The Daily Shot 8/1/2023
3. Interestingly, the drawdown in savings seems to be mostly from higher earning households:
4. Restoring the job openings to unemployed persons ratio to 2019 levels would lead to a more balanced labor market. Hopefully this can be accomplished through a higher labor force participation rate as opposed to fewer job openings:
Source: The Daily Shot 8/2/2023
5. Adjusted for age, the U.S. labor force participation rate is approaching 40-year highs:
Source: The White House Read full article
6. The equity rally in June and July was broad based but such uniform rallies are often fleeting:
7. China’s manufacturing sector contracted unexpectedly in July:
Source: The Daily Shot 8/1/2023
8. Chinese consumers lack confidence after the long and difficult pandemic induced recession:
Source: @economics Read full article
9.While the companies with the most mentions of AI aren’t surprising, it seems like every company has developed an AI strategy within the last quarter:
Source: Reuters Read full article
Disclosure: The charts and infographics contained in this blog are typically based on data obtained from 3rd parties and are believed to be accurate. The commentary included is the opinion of the author and subject to change at any time. Any reference to specific securities or investments are for illustrative purposes only and are not intended as investment advice nor are they a recommendation to take any action. Individual securities mentioned may be held in client accounts. Past performance is no guarantee of future results.