A significant increase in consumer confidence
In the first days of November, consumer confidence in the United States increased significantly, reflecting renewed optimism about the economic future and personal finances. According to the University of Michigan’s preliminary consumer sentiment index, the value reached 73 points, exceeding forecasts made in a Bloomberg survey of economists. This figure represents a positive sign for the American economy, suggesting that citizens are more likely to spend and invest
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Inflation expectations and economic sentiment
A crucial aspect of this increase in confidence is inflation expectations. Consumers expect prices to rise by 2.6% next year, the lowest level since 2020. This indicates a perception of economic stability and a certain confidence in the authorities’ ability to control inflation. However, expectations for average price increases over the next five to ten years rose slightly to 3.1%, suggesting that while there is short-term optimism, there are concerns for the long term
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Implications for the global economy
The improvement in consumer sentiment in the United States also has repercussions globally. European stock exchanges, for example, showed caution in the last session of the week, partly due to news from the United States. In particular, Piazza Affari closed lower, with the Ftse Mib recording -0.7%. This reflects investor uncertainty regarding economic performance and the Federal Reserve’s future decisions. In addition, Italian economic data show that GDP remained stationary in the third quarter, highlighting a situation of stagnation that could influence growth expectations
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Company performance and future prospects
In this context, it is interesting to note the performance of companies. For example, Unipol reported a 6% drop in profit in the first nine months of 2024, while MPS recorded robust growth with net profit rising 68.6% year-on-year. These mixed results highlight the challenges and opportunities that companies face in a changing economic environment. Investors and analysts will continue to closely monitor these developments to assess the future prospects of
the economy.