Macro: It’s all about elections and keeping status quo
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
Head of Macroeconomic Research
Summary: The latest UMich consumer sentiment survey confirms that household spending should keep driving the US economy in the near term.
Today, preliminary results are out. It is a solid US consumer survey, that why’s our comment will be rather short. Consumer sentiment is still in its long-term range, climbing at 96.0 vs expected 92.0. Current conditions (113.4), expectations (84.8) and inflation expectations (1yr at 2.5% and 5y at 2.2%) are all well-oriented.
The record-long US expansion is likely to continue supported by solid US consumer spending and healthy household spending in the coming months.