Consumers are optimistic about August, and July retail returns show why.
The economy has been on the rise for a plethora of reasons – a skyrocketing stock market, domestic U.S. manufacturing promises, and decreased unemployment. Those might be a few reasons why American consumers are positive about their options this month.
Consumer confidence polling is sought after as a major indicator of economic trends, and fortunately, consumers are happy.
A report in late July illustrates that consumer confidence reached a 16-year high. In July, the consumer confidence index hit 121.1 – a mark that the index hasn’t hit since 2001. Since consumer spending is roughly 70 percent of economic activity in the United States, this high number plays a critical role in the nation’s outlook. As consumers spend more – and are more confident about the consequences of that spending – it has a domino effect on the economy.
But consumer confidence isn’t the only positive economic signal as of late. The stock market has been soaring in 2017, which is best characterized by the market’s recent record high. Having hit above 22,000 for the first time ever, the stock market has seen unprecedented growth.
And although the ever-skyrocketing stock market has fueled fear of an “overheated” economy by some folks, one expert disagrees. According to billionaire and Appaloosa Management founder and CEO David Tepper, we’re nowhere near an overheated market. Tepper points to President Donald Trump’s economic policies and low inflation rates as a indicators of a positive economic future.
The stock market isn’t the only positive economic trend for which Trump is taking credit.
Some companies have recently pledged to open manufacturing facilities in the United States, suggesting job growth in the near future. Japanese automakers Toyota and Mazda pledged to open up a $1.6 Billion manufacturing plant by 2021. The partnership was praised by Trump, however, after he threatened via Twitter to increases taxes on Toyota if they were to move manufacturing for their U.S. vehicles outside of the country.
U.S. manufacturing investments by companies such as Toyota have been a critical part of the Trump presidency, with the Carrier plant deal being the first of such manufacturing partnerships.
President Trump entered office with a upward-trending economy, including a decreasing unemployment rate that recently reached a 16-year low.
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