Core Insights - Americans are reducing their credit card usage in August, indicating a trend of caution among households [1] Economic Context - Households are facing persistent inflation, a challenging job market, and ongoing economic uncertainty related to U.S. tariffs [1]

Core Insights - Gold futures have surpassed $4,000 per ounce for the first time, driven by investor demand for safe-haven assets amid ongoing U.S. government shutdown [1][2] - Gold prices have increased approximately 50% since the beginning of 2025, rising from around $2,670 to about $4,003 per troy ounce [2] Economic Context - The rise in gold prices is largely attributed to economic uncertainty stemming from President Trump's trade wars, which have led to increased tariffs and strained both businesses and consumers [4] - The current U.S. government shutdown has exacerbated investor anxieties, delaying key economic data and affecting federal employees [5] Market Dynamics - The demand for gold typically spikes during periods of investor anxiety, as seen with the recent surge in prices [3] - Central banks worldwide have shown strong demand for gold, influenced by rising geopolitical tensions, including conflicts in Gaza and Ukraine [6]

Consumer Spending Trends - Economic uncertainty leads to reduced spending on luxury goods like high heels and handbags [1] - Affluent individuals maintain high spending on luxury travel [1] Industry Outlook - The luxury travel boom's sustainability is questionable [1]

Economic Impact of Government Shutdown - Government shutdown cancels the release of the Jobs Friday report, a key economic indicator [1] - Economic uncertainty is causing companies to slow down hiring, impacting job growth [2] - A prolonged government shutdown could negatively affect GDP, economic growth, and working Americans [2] - Hundreds of thousands of government workers are furloughed, leading to reduced spending and potential economic consequences [4] Data and Economic Uncertainty - Lack of government data due to the shutdown makes it difficult to assess the true state of the economy [3] - The economy may be weakening, but the extent is uncertain due to limited data [1] - Job growth has slowed significantly in recent months [1]

The government shutdown is adding uncertainty to an already fragile economy at the worst possible time as it weathers volatility from President Trump's tariff war and shaky job market. Another expected casualty of the shutdown, this week's jobs report, which is not expected to be released on Friday. That means business leaders will miss key data they use to make critical decisions that drive the nation's economy.And the man tapped to run the agency that releases that report won't be taking the job after Tru ...

Core Insights - The price of gold has reached a record high of $3,858.45 per troy ounce amid the U.S. government's first shutdown in nearly seven years, with futures trading close to $3,900 [1][3] - Gold and other precious metals, such as silver, have seen significant price increases due to economic uncertainty, particularly influenced by trade tariffs imposed by the Trump administration [2][4] - Gold futures have risen over 45% since the beginning of 2025, while silver futures have increased by more than 59%, reflecting heightened investor anxiety [3] Economic Context - The economic turmoil is largely attributed to the trade wars initiated by the Trump administration, which have led to increased tariffs, higher costs for businesses and consumers, and a weakening job market [4] - The current government shutdown is expected to exacerbate economic anxieties, with a significant number of federal workers facing furloughs and potential job losses [5] - The duration of the government shutdown could significantly impact the economy, although Wall Street has remained relatively unaffected so far [6]

Listen to this ArticleMore info 0:00 / 0:00 U.S. job openings were essentially unchanged in August amid economic uncertainty arising from President Donald Trump's trade policies and an impending government shutdown. The Labor Department reported on September 30 that job openings blipped up to 7.23 million from 7.21 million in July. Economists had forecast a drop to 7.1 million. Most Innovative Companies Final Deadline: October 3 LOGIN SUBSCRIBE | FastCo Works advertisement BY Associated Press IBM Texas A& ...

Core Insights - The Mastercard Economics Institute anticipates a slower growth rate in holiday spending compared to the previous year due to labor market hiring slowdowns and tariff uncertainties [1][3] - Retail sales excluding autos are projected to grow by 3.6% year-over-year during the holiday shopping season, a decrease from the 4.1% increase recorded in 2024 [2] - E-commerce sales are expected to rise by 7.9% year-over-year, while in-store sales will increase by 2.3% year-over-year [4] Labor Market and Consumer Behavior - Consumers are expected to seek value amid economic uncertainty, influenced by labor market health and tariff-related price increases [3] - The labor market is characterized by a slowdown in hiring, but a low firing rate is helping to support consumer spending [3] - Wage growth is moderating for lower-paid workers, while high-income workers benefit from stock market gains [4] Consumer Spending Expectations - Deloitte forecasts a retail sales increase of 2.9% to 3.4% for the holiday season, down from a 4.2% increase in 2024 [5] - Bankrate's report indicates that 43% of holiday shoppers plan to spend the same as last year, 30% expect to spend less, and 27% anticipate spending more [6] - PwC's Holiday Outlook suggests a 5% decline in holiday spending, marking the first drop since 2020, with 84% of consumers planning to cut back due to rising prices and higher living costs [7]

Salary Expectations - Employers plan to increase salaries by an average of 3.4% in 2026, consistent with the increases reported in 2025 [1][5] - Payscale's survey indicates a similar average pay increase of approximately 3.5% in 2026, down from 3.6% in 2025 [5][6] Economic Constraints - 60% of companies cite economic uncertainty as a key constraint affecting salary and hiring decisions [2] - 66% of employers now prioritize economic concerns over labor competition when making compensation decisions, an increase of 17 percentage points from the previous year [7] Hiring Trends - Companies are slowing down hiring and are more cautious in filling open positions, with some transitioning temporary layoffs to permanent reductions [3] - 16% of surveyed companies plan to allocate salary budgets towards skill-building initiatives for existing employees [3] Industry Variations - Pay increases vary by field, with employees in science, engineering, and government expected to see salary bumps exceeding 4% [9]

Consumers are feeling more financially anxious—and at a moment where consumer credit card debt has hit an all-time high, some young consumers are turning their back on credit cards in favor of buy-now-pay-later (BNPL) services like Afterpay and Klarna. Second quarter data from the Federal Reserve Bank of New York showed that Americans owe $1.21 trillion on their credit cards. The bank said credit card delinquencies have “remained elevated;” its data showed that the delinquency rate has hit 7.18 percent. M ...