July 29, 2025 05:06 PM GMT US Economics | North America Impacts of OBBBA on Consumer Spending and Cohorts We expect a slight boost to consumer spending in 2026 from the fiscal bill, but larger drags on spending in 2027 and beyond. Older and higher-income cohorts will benefit most, while spending cuts will negatively impact low-income consumers. We provide details on each new consumer provision. Key Takeaways Exhibit 1: We expect a small, ~15bp, boost to nominal spending in 2026 from the bill, but negative i ...

Tariffs are a massive tax on households and businesses, says @BobOnMarkets. And that harmful policy is now dragging down consumer spending and job growth (via @opinion) https://t.co/Ym6u2KRC4P ...

Mastercard said more consumer spending in its payment network translated to higher revenue and earnings in the second quarter https://t.co/0ck5vk4z2s ...

US consumers continued to spend in June despite tariff-related price hikes, new data shows https://t.co/Wuv3hgw4VJ ...

The Fed’s preferred measure of underlying inflation accelerated in June to one of the fastest paces this year while consumer spending barely rose https://t.co/EtMSIo9P2K ...

Consumer Spending & Economic Outlook - Consumer spending data for June is crucial, with expectations of a soft patch, already evident in retail sales data [1] - Service sector spending, including airlines, hotels, and restaurants, also shows signs of weakness [2] - Demand was pulled forward in anticipation of tariffs, and price increases are impacting consumer spending [3] - There's a bifurcation in consumer behavior, with higher-end consumers and businesses faring better than lower-end consumers who are squeezed by tariffs [5][6][7] Trade & Tariffs - American protectionism is damaging the global economy, potentially reaching a $2 trillion hit by the end of 2027 relative to the pre-trade war path [8][9] - The effective tariff rate is around 17%, the highest since the 1930s, acting as a headwind to global growth [10] - Tariffs are a regressive tax on consumers [7] Capital Spending & Tax Legislation - Tax legislation provides significant accelerated depreciation for capital spending, potentially boosting corporate cash flow [11] - Companies like AT&T, Verizon, T-Mobile, and United Rental have indicated that the tax legislation supports their cash flow [12] - Capital spending is underappreciated for its role in creating productivity, profitability, and lifting potential GDP growth [13] - Full CapEx depreciation for 80% of CapEx will be a significant boost to cash flow [11] Monetary Policy & Labor Market - The Fed may not need to cut rates further, as previous rate cuts and tax measures are already providing stimulus [23][24][25] - Improvement in corporate profits into 2026 is expected to lead to a stronger labor market [20] - Capital spending improves profitability through productivity, incentivizing spending on jobs and wages [17]

With high inflation such a recent memory, American consumers angrily insist that everything is already too expensive. Households have little tolerance for paying even higher prices. The opposite may be true of foreign companies https://t.co/DcWynwg5W1 ...

With high inflation such a recent memory, American consumers angrily insist that everything is already too expensive. Households have little tolerance for paying even higher prices. The opposite may be true of foreign companies https://t.co/UrvXKAxqVA ...

S&P and NASDAQ hitting fresh intraday highs today. So, how far can this record setting rally run. Joining me now post 9 is Ed Yardi of Yardeni Research.Nice to see you. >> My pleasure. >> Um, I mean, this thing just keeps going and going and going.Is it going to continue to go. >> It's a slow motion uh meltup. >> It doesn't feel that slow anymore.>> Well, you know, day by on a day dayby-day basis, but it's adding up to substantial gains clearly. And I think the market is coming around to a view I've had for ...

Canadian retail sales are flashing a warning sign of weaker spending by consumers who may be increasingly worried about rising prices and their job prospects https://t.co/0jw3dhNtLM ...