The long weekend brought to us by labor unions was a nice, though temporary reprieve. No sooner were we idle than were we thrown back into the mix of volatile stock market news, ominous economic data and wincing Donald Trump bloviations. Trump should take lessons from Liam Dutton on how not to get tongue tied.
While the stock market ended up week-over-week, delivering a better performance than the prior week, the clear signal from economic news is that the people aren’t buying what the government’s selling. It’s good to live in The Capitol.
The week’s first and uniquely positive news was the National Federation of Independent Businesses’s (NFIB) August Small Business Optimism Index (SBOI). It increased 0.05 points to 95.9 from July’s 95.4. The index’s improvements came from gains in job openings, corroborated by the Labor Department’s JOLTS report on Wednesday, and earnings news. The drag, as is the contemporary trend, is the index’s future expectations components.
The second report worth our while was Gallup’s August U.S. Consumer Spending Measure, which measures consumer’s daily spending habits. August’s reported daily spending was $89, down $2 from July’s $91. Spending hasn’t broken out of it’s $2 range, up or down, for the last five months. Expectations, due to previous performance, is that September’s spending will drop, hopefully not as much as America’s faith in The Patriots.
Lastly came the University of Michigan’s preliminary September Consumer Sentiment report. It showed a 6.2 point drop to 85.7 from August’s 91.9 points. This suggests a considerable drop in consumer spending for September, as also suggested above by NFIB’s SBOI. This is the index’s lowest report since last September. Both the current conditions and future expectations components of this index are down, like Hillary’s ability to use email, with future expectations having fallen thus far by 7 points.
As mentioned previously, report after report shows consumer’s increasing concerns about the future. The stock market ended slightly up because the economic news was slightly bad. That’s as ugly a turn of events as the predictable GOP presidential candidate infighting this week and indicates why Americans are Rick Perrying themselves out of the job market.
We continue to stress the need to spend less and to save and invest more. Security is in cash and most worthwhile gains are in the stock market. If the system’s rigged, join the system or end up a loser. While credit is cheap, it’s precarious. Avoid the precarious and seek safety.
That’s this week’s Money Conscious Mash Up. Come back every week for a report David says is like Janet Yellen reading the Fed minutes like a catty bitch.