Consumer confidence unexpectedly pulled back in October as Americans became more concerned about prospects for employment, incomes and the economy.
The Conference Board’s index decreased to 100.9 from a downwardly revised 101.3 reading in September, according to a report Tuesday. The reading fell below the median estimate of 102 in Bloomberg’s survey of economists.
The gauge of expectations slipped 4.5 points to 98.4, while a measure of sentiment about current conditions rose to a seven-month high of 104.6.
Economists project the expansion in the world’s largest economy to moderate after a projected record annualized increase in the third quarter. The reading, which shows sentiment remains well below pre-pandemic levels, comes a week before the presidential election and underscores the impact of the virus and lack of new stimulus.
“There is little to suggest that consumers foresee the economy gaining momentum in the final months of 2020, especially with COVID-19 cases on the rise and unemployment still high,” Lynn Franco, senior director of economic indicators at the Conference Board, said in a statement.
The decline in expectations was mainly driven by a dimmer short-term outlook for jobs. The share of respondents who said that they expect fewer jobs in the next six months rose to 20.2 per cent from 16.1 per cent, the report showed. Larger percentages also said that they expect business conditions to worsen and less income.
Respondents indicated they were more less likely to make big purchases, including cars and appliances, in the coming months. The share planning to buy a home increased slightly to a three-month high of 6.6 per cent.
Can't solve economy issue without solving COVID-19, says professor – KitchenerToday.com
It’s a classic case of trying not to put the cart before the horse.
There’s no doubt the economic disaster is caused by the COVID-19 pandemic, but an associate political science professor at Brock University indicates you can’t solve the economic crisis without dealing with the health crisis first.
“You can’t have a strong functioning economy if you’ve got the disease running rampant in the community, it just can’t happen,” Blayne Haggart told The Mike Farwell Show on 570 NEWS.
He said economists have been clear on the issue from the beginning, advocating for financial support on the health side and figuring out later how to pay for it.
Haggart said overall, while we started off the pandemic well and saw numbers begin to drop, not enough was done to prepare for fall and winter, such as adequate investments in contact tracing and testing.
He said when it comes down to it, just the mere presence of the virus is causing the economic problem, not the restrictions related to it.
“People are not going to go into shops (as per usual), even if there’s no government intervention, because people don’t want to die,” Haggart added.
“Some people will, but a lot won’t, so businesses are going continue to be depressed up until the moment where the disease finally hits a breaking point, where we’ve got to basically close things down, or everybody gets sick.”
“That’s the kind of roller coaster that we’re on, and the key is to get off it. The longer you wait, though, the more costlier it is to get off the roller coaster.”
Reimagining the global economy for a post-COVID-19 world – Brookings Institution
When the COVID-19 pandemic sent the global economy into a deep recession, it exposed structural weaknesses in economic institutions and highlighted the need for reform. The challenges countries face today are daunting, but this moment should be recognized as an opportunity to build back more sustainable and inclusive economies. David Dollar is joined by three Brookings experts—Eswar Prasad, Marcela Escobari, and Zia Qureshi—to discuss their forward-looking policy proposals for a post-COVID-19 world.
Prasad, Escobari, Qureshi, and Dollar are all contributors to a new report, “Reimagining the global economy: Building back better in a post-COVID-19 world.”
Singapore upgrades third-quarter GDP, sees economy returning to growth next year – TheChronicleHerald.ca
SINGAPORE (Reuters) – Singapore’s economy contracted much less than initially estimated in the third quarter due to gradual easing of COVID-19 lockdown measures and authorities expect the city-state to bounce back to growth next year from its worst recession.
Gross domestic product (GDP) fell 5.8% year-on-year in the third quarter, the ministry of trade and industry said on Monday, versus the 7% drop seen in the government’s advance estimate.
Analysts expected a 5.4% contraction, according to the median of 10 forecasts.
The government said it now expects full-year GDP to contract between 6.5% and 6% versus its prior forecast for a 5% to 7% decline. The country is still facing the biggest downturn in its history.
The economy is expected to grow 4% to 6% next year.
“The recovery of the Singapore economy in the year ahead is expected to be gradual, and will depend to a large extent on how the global economy performs and whether Singapore is able to continue to keep the domestic COVID-19 situation under control,” the MTI said in a statement.
The economy grew 9.2% from the previous three months on a seasonally adjusted basis, compared with the 13.2% contraction in the second quarter. The bounce marked the end of a “technical recession”, as it followed two preceding quarterly contractions.
(Reporting by Chen Lin and Aradhana Aravindan; Editing by Sam Holmes)
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