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New Delhi: <keyword id="20081557" type="General" weightage="20" keywordseo="auto-industry" source="keywords">Auto industry</keyword> players are eyeing robust performance in the ongoing festive period to lift overall consumer sentiment and set the tone for the rest of the year amid slowing demand. The festive season usually commences with Onam and ends with Diwali every year. <keyword id="20034542" type="General" weightage="100" keywordseo="Kia-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Kia India" meta.hostid="153" meta.entityid="Kia India">Kia India</keyword> National Head of Sales and Marketing Hardeep Singh Brar told PTI that the last 3-4 months were not good for the industry as sales declined compared to the same period last year. "With pent-up demand of the last few months there and government investment starting to flow in, we feel things should start improving from here onwards," he noted. Brar said the booking momentum in September was good, which is a strong indication for October. "And this time, all festivals are in October..we expect about 5-10 per cent sales growth during the period as compared to last year," he added. Brar said that in the January-April period, the passenger vehicle industry witnessed a growth of 7 per cent, but in May-September, there was a dip of about 2-3 per cent, leading to the buildup of inventory. <keyword id="20505895" type="General" weightage="20" keywordseo="Nissan-Motor" source="keywords" meta.keywordsubtype="org" meta.entityname="Nissan Motor" meta.hostid="153" meta.entityid="Nissan Motor">Nissan Motor</keyword> India Managing Director Saurabh Vatsa said the entire industry is looking at the festive season to bring some cheer after witnessing tough three months. "I think it has been a challenging period. The festive period will define the quarter, and the third quarter will define what happens in the remaining part of the year," he said. Everybody is looking forward to the festive seasons, especially from the industry, he added. <keyword id="19967765" type="General" weightage="20" keywordseo="Toyota-Kirloskar-Motor" source="keywords" meta.keywordsubtype="org" meta.entityname="Toyota Kirloskar Motor" meta.hostid="153" meta.entityid="Toyota Kirloskar Motor">Toyota Kirloskar Motor</keyword> Vice President, Sales-Service-Used Car Business, Sabari Manohar said the company is witnessing enhanced footfalls and enquiries. "Key to meeting this rising demand has been our strategic operational improvements, such as the introduction of a third shift. This has significantly optimised our supply chain, particularly for high-demand models like the Urban Cruiser HyRyder, where waiting periods have been reduced," he said. Additionally, there is a clear shift in sentiment, with an increasing embrace of eco-friendly technologies, not only in urban areas but also in Tier II and Tier III markets, Manohar said. <keyword id="19909974" type="General" weightage="20" keywordseo="Maruti-Suzuki" source="keywords" meta.keywordsubtype="org" meta.entityname="Maruti Suzuki" meta.hostid="153" meta.entityid="Maruti Suzuki">Maruti Suzuki</keyword> India Senior Executive Officer (Marketing and Sales) Partho Banerjee said the company is trying to increase its sales by bringing in some limited edition models. He noted that during Ganesh Chaturthi and Janmashtami, the company witnessed good traction in sales and has been able to generate volumes as per the business requirements. <keyword id="19906967" type="General" weightage="20" keywordseo="Tata-Motors" source="keywords" meta.keywordsubtype="org" meta.entityname="Tata Motors" meta.hostid="153" meta.entityid="Tata Motors">Tata Motors</keyword> Passenger Vehicles MD Shailesh Chandra said in its monthly sales statement that registrations have picked up pace towards the end of the month (September), which augurs well for the festive period ahead. "We remain focused on driving up consumer preference for our exciting range of vehicles while maintaining the health of our dealer network," he added.

Carmakers expect festive period to bring in robust sales, improve overall buyer sentiment

The residential market shows a positive outlook, with 51% of stakeholders predicting higher sales over the next six months. However, a notable 24% expect stability, while 25% predict a potential decrease, reflecting a balanced yet cautious sentiment, as per a recent <keyword id="19895043" type="General" weightage="20" keywordseo="Knight-Frank" source="keywords" meta.keywordsubtype="org" meta.entityname="Knight Frank" meta.hostid="261" meta.entityid="Knight Frank">Knight Frank</keyword> report. The outlook for residential launches is also positive, with 61% expecting an increase, suggesting continued demand. A more tempered view is held by 20% of respondents who expect stability, and 19% foresee a decrease in launches. The Indian <keyword id="20152263" type="General" weightage="20" keywordseo="real-estate-sector" source="keywords">real estate sector</keyword> continues to reflect a positive outlook for the near future, though with a more cautious approach. In terms of pricing, 63% of stakeholders expect a rise, but 36% anticipate stable prices, and a very small minority predict a decline. G Hari Babu, National President, National Real Estate Development Council (<keyword id="20429653" type="General" weightage="20" keywordseo="naredco" source="keywords">NAREDCO</keyword>), said, "The residential and office markets continue to show notable activity, signaling ongoing growth and opportunity. Developers and other key stakeholders, including banks and financial institutions, are maintaining a positive outlook." He added, "This suggests that while there may be short-term challenges, the sector is well-positioned to adapt and thrive. The continued optimism and activity in the market highlight the sector's ability to sustain its momentum and drive forward, amidst changing conditions." The <keyword id="22822547" type="General" weightage="20" keywordseo="office-leasing-market" source="keywords">office leasing market</keyword> shows signs of strong recovery, with 63% of respondents predicting an increase in leasing activity, driven by positive business sentiments and <keyword id="21313740" type="General" weightage="20" keywordseo="economic-revival" source="keywords">economic revival</keyword>. However, 24% expect stability, and 13% foresee a decline. New office supply also remains a point of interest, with 47% expecting an increase, while 29% anticipate stability, and 24% forecast a decrease. Furthermore, 67% of stakeholders expect office rents to rise, signaling confidence in the market's ongoing growth, even as 27% anticipate stable rents and 7% expect a decrease. The <keyword id="20635920" type="General" weightage="20" keywordseo="future-sentiment-score" source="keywords">Future Sentiment Score</keyword>, which measures stakeholders' outlook over the next six months, saw adjustments across various regions. The North Zone score slightly decreased from 65 in Q1 2024 to 63 in Q2 2024, though it remains firmly optimistic. The South Zone witnessed a more significant drop from 76 to 65, signaling a moderated outlook. In the East Zone, the score fell from 77 to 65, largely influenced by the discontinuation of the 2% stamp duty cut. The West Zone also saw moderation, with the score dipping from 73 to 66, though it too, remains optimistic. The overall Developer Future Sentiment score decreased from 72 to 61, reflecting a more guarded approach. Developers, while cautious, continue to remain optimistic due to strong sales since early 2023. On the other hand, the Non-Developer Future Sentiment core, which includes financial institutions and PE funds, also moderated from 73 to 68. This shift indicates stakeholders' careful consideration of macroeconomic concerns. Optimism in India's broader economic scenario remains strong, with 59% of respondents expecting an improvement, reflecting confidence in the country's economic resilience. However, 24% foresee stability, and 17% predict a decline, underscoring global economic uncertainties. Meanwhile, 51% of respondents anticipate increased funding availability for real estate investments, reflecting continued confidence in the financial sector's support for the real estate market. Shishir Baijal, Chairman and Managing Director of Knight Frank India Pvt Ltd, noted, "As we transition through 2024, a host of factors are playing out globally. The global economic landscape shows resilience despite ongoing challenges. Inflation rates are gradually aligning with central bank targets, enabling a more supportive monetary policy. India, benefiting from stable post-election conditions, remains a strong growth beacon." He added, "Domestic consumption is robust, supported by consumer loans, though there are some signs of growth moderation. Food inflationary pressures persist, but are converging overall towards price stability targets. With a projected GDP growth rate of 7.2% for FY 2025, India's outlook remains positive. An effective monetary policy by the Reserve Bank of India has helped sustain growth with price stability, positioning India as one of the fastest-growing large economies globally." The Current Sentiment score, which reflects stakeholders' view of the market compared to six months ago, moderated from a decadal high of 72 in Q1 2024 to 65 in Q2 2024. This suggests a more measured outlook as stakeholders navigate evolving global economic conditions. Despite the dip, the score remains indicative of optimism. Looking forward, the Future Sentiment index also adjusted from 73 in Q1 2024 to 65 in Q2 2024, signaling a positive yet more conservative outlook for the near term. While macroeconomic uncertainties may dampen enthusiasm, stakeholders continue to show confidence in the sector's resilience and adaptability.

Despite budget provisions, residential housing market will see sales growth, notes recent report by Knight Frank

<ul class="summary-list"><li><a target="_blank" class="" href="https://www.businessinsider.com/whats-behind-china-luxury-goods-slowdown-economy-changing-consumer-tastes-2024-10">China's luxury slump</a> is spreading to more consumer brands.</li><li>Companies like Starbucks, Estée Lauder, and Nike have reported falling sales in the region.</li></ul>For the better part of this year, <a target="_blank" href="https://www.businessinsider.com/china-luxury-retail-sales-slowdown-brands-fashion-2024-7">China has experienced a slump</a> in the most opulent of sectors. Sales for luxury powerhouses like LVMH, Richemont, and <a target="_blank" class="" href="https://www.businessinsider.com/how-burberry-became-fashions-biggest-fail-stock-drop-ceo-ousting-2024-8">Burberry</a> have fallen in the region that once seemed to represent limitless growth for high-end goods.Now, that downturn is coming for a wider set of consumer industries. Chinese people aren't just saving on <a target="_blank" class="" href="https://www.businessinsider.com/gucci-sales-profit-reputation-falling-luxury-kering-michele-china-2024-5">Gucci</a> and cognac but also cutting back on spending on cheaper products like beer and lipstick. It's hitting Western brands particularly hard, as reflected by companies across the consumer sector reporting muted sales in China in the most recent quarter.Consumer spending in China never fully recovered after the government started lifting COVID-19 curbs in late 2022. Since then, the country has struggled with weak consumer sentiment and multiple economic challenges, including a property crisis, deflation, and high youth unemployment. China's<a target="_blank" href="https://www.businessinsider.com/china-economy-3q-gdp-growth-stock-market-stimulus-2024-10"> third-quarter GDP</a> grew 4.6% year-on-year — the slowest pace in over a year and below Beijing's growth target of around 5%.In late September, Beijing announced <a target="_blank" class="" href="https://www.businessinsider.com/china-economy-aggressive-monetary-stimulus-interest-rate-rrr-2024-9">aggressive stimulus</a> measures to boost the economy, but analysts say much more is needed to spur and drive consumer confidence.Meanwhile, China's once-free-spending consumers are holding back and prefer to save — in cash or <a target="_blank" href="https://www.businessinsider.com/china-economy-gold-rush-consumer-spending-money-savings-starbucks-gucci-2024-5">gold.</a> Cautious spenders are also trading down to knockoffs and lower-priced or local alternatives across a range of products from beauty and fashion to travel.The prevailing zeitgeist in China is about "aiming to <a target="_blank" href="https://www.businessinsider.com/chinese-economy-young-shoppers-looking-dupes-substitutes-pingti-fashion-travel-2024-9#">live well while spending less,</a>" MingYii Lai, a strategy consultant at Beijing-based market research firm Daxue Consulting, told Business Insider in September.Last week, AB InBev, the world's largest beer producer, announced declining revenue in the region, joining rival Carlsberg in reporting disappointing results. AB InBev, which makes Budweiser, has struggled in China all year and reported a 16% sales drop in the country for the third quarter.People in China are skimping on on-trade alcohol purchases, meaning they are spending less at bars and restaurants, Spiros Malandrakis, Euromonitor's head of research in the alcohol sector, told Business Insider."There is some flexibility, but it is not entirely recession-resistant," he added.It looks like they aren't going out for coffee or burgers, either. Negative sales in China brought down McDonald's results for the third quarter. And <a target="_blank" class="" href="https://www.businessinsider.com/why-starbucks-is-struggling-in-china-sales-prices-competition-coffee-2024-8">Starbucks</a>, which announced its fourth-quarter earnings last week, saw comparable store sales fall 14% in China."All indications show me the competitive environment is extreme, the macro environment is tough," <a target="_blank" href="https://www.businessinsider.com/starbucks-ceo-to-lay-out-strategy-to-fix-coffee-chain-2024-10">Brian Niccol, the coffee giant's new CEO</a>, said about China during the company's earnings call.A similar phenomenon has arisen in fashion and beauty, where nonluxury brands are seeing consumer confidence, leading to an overall tightening of belts.Beauty brands like Estée Lauder and L'Oréal have reported worse-than-expected results in the region. Sales for the former decreased 11% in the most recent quarter, driven by mainland China, where the company noted a declining appetite for skincare. It doesn't expect recent government stimulus to help sales in the current quarter.Those results came on the heels of Nike's, which had lowered its full-year guidance over the summer, blaming China's unstable economy. The sneaker giant cited "softness" in the country, its third-largest market by revenue.Even <a target="_blank" href="https://www.businessinsider.com/apple-stock-earnings-report-call-live-updates-2024-10">Apple</a>, once bulletproof in the region, missed revenue estimates in the Greater China division.Despite the headwinds, there have been bright spots.Adidas managed to buck the trend, reporting sales up 9% in Greater China in the third quarter. Heineken, too, saw growth in the region last quarter.Sectors offering discretionary <a target="_blank" href="https://www.businessinsider.com/china-economy-lopsided-recovery-consumer-retail-spending-industrial-output-property-2024-5">"eat, drink, and play"</a> experiences outperformed the wider consumer sector in China earlier this year, though their momentum has slowed in the past few months, wrote Lynn Song, the chief economist for Greater China at ING, in an October 28 note."More consumers appear to be gravitating toward higher value-for-money options," Song wrote.

China's luxury slump is trickling down to other consumer companies

Overall consumer sentiment up by 5.5 points compared to July, signaling a cautious but steady improvement due to festive season: Report

<ul><li><keyword id="412367" type="General" weightage="20" keywordseo="consumer-sentiment" source="Orion">Consumer sentiment</keyword> has improved and Indians are eager to celebrate this <keyword id="36208" type="General" weightage="20" keywordseo="festive-season" source="Orion">festive season</keyword>, says a survey.</li><li>Consumers are keen to splurge on luxury goods, beauty and personal care products, consumer durables and more.</li><li>With a surge in inquiries, real estate players expect 20% growth in sales this season.</li><li>Online retailers are also expected to see 18-20% in gross merchandise value. </li></ul>Indians are gearing up for the festival season that kicks off with Ganesh Chathurthi this week. As the auspicious months arrive, the real estate sector is upbeat with new launches and more, but the shadow of the monsoons lingers over automobile dealers and jewellers. This season, Indians are not shying away from high-profile purchases this festive season as the real estate sector has reported healthy inquiries – thanks to the high consumer sentiment due to heightened economic activity. “As we approach the festive season, we are already witnessing a surge in inquiries and we are expecting around 20% growth compared to last year’s festive season. This naturally offers a context for consumers to go in for their dream homes as the overall climate is geared towards sustained demand,” said Ramani Sastri, chairman &amp; MD of Sterling Developers. The demand for new homes has been growing and has hit an all-time high, and realtors expect a windfall this season, aided by growth in new launches especially in the mid and luxury categories. Rising homeownership amongst millennials, aided by the higher disposable income and willingness to upgrade to larger, luxurious spaces equipped with better amenities. “Developers are optimistic about the desire for homeownership and anticipate that with attractive schemes and offers, the uptake for homes across cities will be healthy. Further, the unchanged repo rates and the appraisal cycle that coincides with the festive season, will provide a much-needed boost to the residential sales figures in the coming months,” said Kanika Gupta Shori, founder and COO, Square Yards. Consumer goods are also expected to see traction this season, thanks to the underlying need to improve living standards combined with the surge in the need for comfort in households. “People are upgrading to a more premium lifestyle and our products, with their distinct combination of technology, ultra-modern look and cutting-edge features, will continue to find traction. The focus on launching new products, coupled with good deals and enhanced distribution, especially in the tier-2 and tier-3 cities, should help brands during the festive season ahead,” said Parag Kulkarni, senior VP-international and president, A O Smith India, who are known for their water heaters and purifiers. Better than last year The festive mood is also high for other purchases like clothes, luxury goods and more. A survey by global technology company The Trade Desk says that 70% of Indians are ready to spend more this Diwali – that’s a 35% higher than last year. The year of 2022 was one of the first festival seasons which was not masked by fear of Covid-19 in the last few years. This year, sales are expected to be better. “With the broader economy coming back to business-as-usual levels, this festive season is likely to catalyze online consumption demand,” said a report by Redseer. With regards to online shopping, the growth in gross merchandise value (GMV) of sales is expected to be 18-20% higher than what it was in the 2022 festival season – which saw a 10% growth. “The planned increase in consumer spend is led primarily by consumers’ bullish view that their financial situation has improved according to 53%, and consumers’ eagerness to celebrate a lot more this year as per 49%,” The Trade Desk says. A significant majority ie. 84% expressed interest in buying luxury goods and apparel, with 80% on gold, as per Trade Desk survey. Amongst those who plan to spend more, 68% are more likely to spend more on new clothes, the rest on food items, gifts for family and more. Within e-tailing, beauty and personal care products, home and general merchandise, fashion are expected to see high demand – with persistent premiumization. Auto and gold sales rely on rural demand for growth uptick After an upbeat August sales when sales of passenger vehicles and three-wheelers hit an all-time high, the outlook for auto sales too is upbeat. “Based on the performance of last month (August) , we are even more optimistic for demand to pick-up during the festive season, enabled by positive economic outlook and the revival of monsoon after a deficit in August,” said Vinod Aggarwal, the president of industry body Society of Indian Automobile Manufacturers (SIAM). Two-wheeler sales, however, remained dull due to subdued rural demand on account of insufficient rainfall that could temper sales growth going ahead, as per experts. Consumer demand in this segment has remained ‘ambivalent’ according to yet another industry body Federation of Automobile Dealers Association (FADA). The monsoons have been in a deficit for most of the season, while a pick-up is expected in September. Without that pick-up, combined with low reservoir levels can have both direct and indirect effect on consumption both in rural and urban areas. Low sowing across two cropping seasons can have a devastating effect on inflation — driving down consumer sentiment across auto and other sectors. “After a prolonged period of stagnation, rural demand is showing signs of a positive resurgence. However, this recovery remains tenuous, contingent on the performance of the final phase of the monsoon season. Such developments would be particularly inopportune as they would coincide with the peak of India's festive season, notably Navratri and Deepawali, traditionally periods of heightened consumer activity,” said FADA. Jewellery sales too could be clouded by inflation, say experts, even as the yellow metal’s prices have been inching down on account of various macro economic factors. “With the start of the festive and wedding season, domestic gold demand is expected to gain impetus. However, higher inflation and weaker rural income on account of a less than ideal monsoon could potentially weigh on demand,” says Ghazal Jain, fund manager, alternative investments at Quantum Mutual Fund. Others, however, feel that consumers would be keen on addition to their physical old portfolio driven by the lower prices. Their prices have come down from a high of ₹61,750 per 10 gm in May to ₹59,000 per 10 gm currently — a healthy 20-25% drop from the recent surge. “Festive seasons have consistently witnessed a surge in physical gold demand, particularly in the realm of ornamental jewellery, as consumers seek the latest and trendiest designs. After a period of subdued festivities, the recent years have seen a resurgence in celebrations, rekindling the enthusiasm for gold,” said Jateen Trivedi, VP-research at LKP Securities. SEE ALSO <a href="https://www.businessinsider.in/careers/news/over-43-of-indian-employees-are-struggling-with-anxious-depressed-or-isolated/articleshow/103661485.cms">More than half of Indian employees are logging off from work exhausted</a> <a href="https://www.businessinsider.in/business/news/soap-opera-fmcg-players-kick-off-price-war-to-bring-back-whats-lost/articleshow/103657469.cms">Soap Opera: FMCG players kick off price war to bring back what’s lost</a>

India switches on its shopping mode as festivals approach, sales set to jump 20%

<ul class="summary-list"><li>America's post-pandemic shopping boom appears to be winding down.</li><li>Consumers are feeling the pain of accumulated price increases and are pickier with what they splurge on.</li></ul>America's wild, <a target="_blank" class="" href="https://www.businessinsider.com/hate-spending-consumers-economic-sentiment-retail-sales-inflation-gdp-growth-2024-4">multi-year shopping spree</a> has come to an end — and retailers who got used to Americans dropping cash on just about everything are in a tough spot.Companies are now grappling with the emergence of a more <a target="_blank" class="" href="https://www.businessinsider.com/consumer-spending-decline-how-retailers-respond-inflation-prices-walmart-costco-2024-6#:~:text=US%20consumer%20spending%20%E2%80%94%20especially%20on,%2C%20restaurants%2C%20and%20other%20experiences.">price-conscious consumer</a> than they have seen in years. Many people have drawn down their excess savings from the pandemic and are becoming painfully aware of the accumulated price increases, even as inflation has come down from multi-decade highs seen in the middle of 2022.According to a survey conducted by McKinsey &amp; Company, 76% of US consumers said they expected to "<a target="_blank" class="" href="https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/the-state-of-the-us-consumer">trade down</a>" over the third quarter, which includes things like delaying purchases, searching for discounts, or opting for a buy now, pay later plan at checkout.It's not that Americans have stopped spending. US retail sales came in stronger than expected in July, with Americans spending more overall compared to the prior month, according to <a target="_blank" class="" href="https://www.census.gov/retail/sales.html">Census</a> data.But consumers are flashing signs that they're way more eager to bargain hunt, and more picky on what they splurge on, according to Ted Rossman, a senior industry analyst at Bankrate.Americans are still willing to <a target="_blank" href="https://www.businessinsider.com/us-consumer-spending-international-travel-entertainment-surge-savings-2024-3">shell out for experiences</a>, Rossman said, pointing to success among airlines and travel-oriented firms. However, they seem to have tired out on goods. Around 40% of consumers said they planned to pare back spending on accessories, home decor, jewelry, and furniture, per McKinsey's survey."It's like, people are going to spend, but they're only going to spend when they feel like there's really value there," Rossman told Business Insider.Customers have likely refined their spending habits, with more Americans now searching for high-quality products at a good value, according to Simeon Siegel, a senior retail and ecommerce analyst at BMO. That's why firms at the low-end — like <a target="_blank" class="" href="https://www.businessinsider.com/mcdonalds-expensive-prices-too-high-fast-food-restaurant-falling-sales-2024-7">McDonald's</a> — as well as on the high-end — like <a target="_blank" class="" href="https://www.businessinsider.com/starbucks-lvmh-loreal-declining-sales-china-earnings-consumer-luxury-retail-2024-7">LVMH</a> — are struggling, he said. For many retailers that saw an across-the-board boom in profits amid post-pandemic revenge shopping, it's the end of an era, and companies are scrambling to figure out how to navigate the new world.<a target="_blank" class="" href="https://www.challengergray.com/blog/cnbc-retail-ceo-turnover-soars-and-fewer-women-hold-top-jobs-in-the-industry/">CEO turnover</a> in the retail industry more than doubled last year, with the sector notching the highest number of CEO change-ups in four years, according to Challenger, Gray &amp; Christmas.Most firms are also on high-alert for how consumers are reacting to higher prices. 86% of consumer staples firms in the S&amp;P 500 mentioned "<a target="_blank" class="" href="https://insight.factset.com/fewer-sp-500-companies-discussing-inflation-on-earnings-calls-for-7th-straight-quarter">inflation</a>" in their first quarter earnings call, according to data from FactSet.Some retailers, like Walmart and Target, have turned to <a target="_blank" class="" href="https://www.businessinsider.com/stores-cutting-prices-summer-list-walmart-target-amazon-aldi-walgreens-2024-6">aggressively slashing prices</a> — a sign that stores are getting more desperate in their efforts to get shoppers in the door, Siegel said."When the consumer had a wallet full of cash handed to them, they didn't have to be as thoughtful. They didn't have to hold back. And so everyone benefited. We're now back in an environment where good retailers, strong brands that offer compelling value … will benefit," Siegel said.<h2 id="2d50d303-346d-40f3-83e6-620eeca3d56c">Picky shoppers</h2>It's a stark turnaround from several years ago, when Americans under stay-at-home orders and flush with stimulus cash were buying just about everything.But those consumers have largely spent down their pile of extra cash, with household excess savings likely having been <a target="_blank" class="" href="https://www.frbsf.org/research-and-insights/blog/sf-fed-blog/2024/05/03/pandemic-savings-are-gone-whats-next-for-us-consumers/#:~:text=We%20estimate%20that%20excess%20savings,over%20the%20subsequent%202%C2%BD%20years.">depleted by the first quarter of 2024</a>, according to a projection from the San Francisco Fed.And consumers — especially those in the lower- to middle-income bracket — are showing signs that they're having trouble dealing with the higher cost of living. Less than half of middle-class Americans rated their personal finances as "excellent" or "good," and two-thirds of middle-class Americans said they believed their income was falling behind the cost of living, according to a second-quarter survey conducted by <a target="_blank" class="" href="https://www.primerica.com/public/Fact_Sheet_Primerica_Financial_Security_Monitor_Q2_2024.pdf">Primerica</a>.Inflation has cooled from its highs several years ago, but the increased selectiveness among consumers will likely continue for the foreseeable future, Rossman and Siegel predicted, due to the fact that it takes time for people's perception of the economy to change."You could correctly say, oh, inflation's come way down, but people's rents are up, people's grocery bills are up," Rossman said. "It's going to take a while to unwind some of that."In the meantime, that could mean more pain for retailers, Siegel said, speculating that many were caught by surprise by the shift in consumer sentiment.Investors are already feeling uneasy. Retail stocks are struggling, with SPDR S&amp;P retail exchange-traded fund falling more than 5% over the past six months."Companies either had product or they didn't, consumers either had stimulus or they didn't," Siegel said of pandemic times, noting that most retailers were able to succeed during the pandemic so long as they had inventory hitting the shelves. "I think we're back to an environment where there are winners or losers."For the weakest or most indebted retailers out there, it could mean that their businesses will continue to shrink, Siegel said, though he noted he wasn't necessarily predicting a wave of company failures."I think that the businesses, the management teams that plan only for good times are the management teams that won't be around for very long," he added.

America's shopping spree is over and retailers are facing a new world of cautious consumers

<ul class="summary-list"><li>Since 2020, wages have outpaced inflation for the majority of American workers.</li><li>Average wages for most US workers are up roughly 25.7% since 2020, while inflation is up about 20.9%.</li></ul>American consumers have been frustrated by <a target="_blank" class="" href="https://www.businessinsider.com/high-prices-inflation-sticking-interest-rate-hikes-stock-market-2024-5">high prices</a> over past years, but there's some good news: <a target="_blank" class="" href="https://www.businessinsider.com/wage-growth-faster-than-inflation-first-time-2-years-2023-6">wages</a> have outpaced inflation since the start of the COVID-19 pandemic.Since 2020, average hourly wages for most US workers have risen faster than the consumer price index, meaning income has maintained its purchasing power against rising prices.Furthermore, <a target="_blank" class="" href="https://www.businessinsider.com/wage-growth-faster-than-inflation-first-time-2-years-2023-6">real wages</a> — earnings adjusted for inflation — have been positive over the <a target="_blank" class="" href="https://www.epi.org/blog/average-wages-have-surpassed-inflation-for-12-straight-months/">past year</a>, according to the Bureau of Labor Statistics, meaning workers are gaining purchasing power.But while wage gains show promising signs for US workers, it can take longer for consumers' perspectives to shift; many Americans are still reckoning with past years' <a target="_blank" class="" href="https://www.businessinsider.com/inflation-cost-of-living-what-is-middle-class-housing-market-2024-4">sticker shock</a> and <a target="_blank" class="" href="https://www.businessinsider.com/housing-crisis-unaffordable-high-rent-prices-cost-burdened-renters-cities-2024-7">high housing costs</a>.<h2 id="aa403d6e-35c8-4365-aee2-c63b2d01f926">Economic data vs consumer sentiment</h2>Nearly four in five US voters said price increases were the top source of their financial stress in the last three months, according to the <a target="_blank" class="" href="https://www.ft.com/content/7aa63450-5ff2-4ea3-b639-1a21db372527?emailId=97961c1a-deb9-48c2-a1b8-95b4d7d4c1d0&amp;segmentId=1ce3de53-bbd6-f782-fb6e-1124c8f8297f">FT-Michigan Ross Poll</a>.While wage gains have outpaced inflation, it can be difficult for consumers to feel the growth, and plenty of people still miss the "good old days" of lower prices.According to Bankrate Analyst Sarah Foster, that's because economists and consumers see prices differently.Economists pay attention to inflation indicators which measure the rate of change of prices. Meanwhile, many consumers focus on the price levels for individual goods (like grocery store receipts) and how they compare to previous years, Foster said.While inflation is now slowing, many Americans still feel burdened by what they see as a jump in the price tags of various items over the past four years."They remember how much it used to cost to fill up their gas tank; they remember how much it used to cost to buy a cart full of groceries," Foster said.Since 2020, prices have risen 20.9%, according to the Bureau of Labor Statistics. However, across that same period, average hourly earnings for production and nonsupervisory workers — most US workers — have risen roughly 25.7%.Furthermore, the 25.7% increase in hourly wages for production and nonsupervisory workers is slightly ahead of the 23.1% increase in wages for all private workers, meaning employees have gained a bit more than their bosses.That wage growth is due in part to a tight labor market and state-level minimum wage increases from 2019 to 2023, according to the nonprofit think tank <a target="_blank" rel=" nofollow" href="https://www.epi.org/publication/swa-wages-2023/">Economic Policy Institute</a>.Nonetheless, wage growth has differed across industries, and while average growth is strong, high prices can be crippling for those whose incomes have paced behind inflation, Foster said.Furthermore, Foster said that industries with strong wage growth, like food services, leisure, and hospitality, are often low-paying jobs to begin with, meaning people are already sensitive to higher prices.<h2 id="2a0eff72-8496-4bfb-8b12-31cbd2fd5faa">Wages are still beating inflation</h2>Consumer prices rose 3.0% year-over-year in <a target="_blank" href="https://www.businessinsider.com/inflation-cpi-june-prices-food-energy-fed-interest-rate-cuts-2024-7#:~:text=The%20consumer%20price%20index%20increased,%25%20month%2Dover%2Dmonth.">June</a>, according to the Bureau of Labor Statistics, the lowest rate in a year and far below the pandemic-era peak of 9.1% year-over-year in June 2022.Meanwhile, average hourly earnings for production and nonsupervisory workers increased 4.0% year-over-year in June, continuing a yearlong trend of hourly wage growth beating out inflation.Since spring 2023, year-over-year wage growth for production and nonsupervisory workers has consistently been above inflation.In another positive sign for people's wallets, prices also decreased 0.1% from May to June, marking the first month-over-month drop since the start of the COVID-19 pandemic.There were <a target="_blank" class="" href="https://www.businessinsider.com/why-costs-keep-rising-inflation-goes-down-eggs-tickets-insurance-2024-7">some price outliers</a>, such as uncooked beef, which was up 10.5% year-over-year in June. Nonetheless, inflation has come down a lot since 2022.Still, prices themselves have not. Overall, price levels are up roughly 7% since inflation's peak in 2022. Yet, wages are up about 10% in the same period, highlighting that income has maintained its power.And higher price levels can be good for the economy. The Federal Reserve targets a 2% inflation rate, so even in a healthy economy, price levels are rising — what matters is managing the rate at which they increase and how that compares to rising incomes.In fact, broad and prolonged deflation — falling prices — is a recipe for high unemployment, economist Paul Krugman wrote in a July 16 <a target="_blank" class="" href="https://www.nytimes.com/2024/07/16/opinion/inflation-prices-economy.html">New York Times column</a>.While US consumers adjust to higher prices, strong wage growth should help ease affordability concerns, Krugman wrote.Have you had a pay increase but still feel burdened by high prices? Please reach out at <a target="_blank" class="" href="mailto:jtowfighi@businessinsider.com">jtowfighi@businessinsider.com</a>.

Wages have outpaced inflation since 2020 but many consumers still feel burdened by prices 

<ul class="summary-list"><li>The <keyword id="12002054" type="UNKNOWN" weightage="60" keywordseo="university-of-michigan" source="Orion">University of Michigan</keyword>'s sentiment index rebounded in April to 65.7 from 59.4.</li><li>That beat the median estimate of 59.0 and marked the first uptick since December 2021.</li></ul>After growing increasingly pessimistic about the <keyword id="11893570" type="UNKNOWN" weightage="100" keywordseo="economy" source="Orion">economy</keyword> through 2022, Americans are suddenly finding some bright spots.The University of Michigan's <a href="http://www.sca.isr.umich.edu/">Consumer Sentiment Index</a> unexpectedly rebounded to 65.7 in early April from 59.4, according to data out Thursday morning. That trounced the median forecast of 59.0 from economists surveyed by Bloomberg. It also marked the first uptick since December 2021 and the largest one-month improvement since 2013.The jump was almost entirely fueled by rosier outlooks toward the economy's future, <keyword id="13053800" type="UNKNOWN" weightage="60" keywordseo="richard-curtin" source="Orion">Richard Curtin</keyword>, chief economist at the University of Michigan's Surveys of Consumers, said. The expectations index soared to 64.1 from 54.3, buoyed by a nearly 30% jump in the year-ahead outlook for the US economy. Respondents also recorded a 17.2% gain in their personal finance expectations despite soaring inflation.Higher hopes for wage gains also lifted the headline index. Workers under age 45 see wages rising 5.3% in the coming year, according to the survey. That's the largest anticipated gain since April 1990, Curtin said.Attitudes toward the present-day economy also turned more encouraging, but at a much slower clip. The index of current economic conditions rose to 68.1 from 67.2, reflecting a slightly more optimistic view of the recovery as it stands.To be sure, the improvement only snaps a months-long downward streak and overall sentiment remains lower than almost every other month in the past decade.Inflation remains the biggest drag on Americans' economic moods. Data out Tuesday showed prices <a href="https://www.businessinsider.com/inflation-cpi-march-price-growth-report-gas-food-costs-climbing-2022-4">soaring 8.5% in the year through March</a>, reflecting the fastest inflation since 1981. While gas prices have fallen from their March peak, the Russia-Ukraine conflict continues to hold costs <a href="https://markets.businessinsider.com/commodities/oil-price?type=brent">at extraordinary highs</a>.The preliminary April survey offers "only tentative evidence" of improved sentiments, and the index is still far from a full recovery, Curtin said."There are still significant sources of economic uncertainty that could easily reverse the April gains, including the impact on the domestic economy from Putin's war, and the potential impact of new COVID variants," he added.Still, the print offers a sign that Americans are focusing on the good of the recovery just as much as the bad. Despite heightened inflation and lingering uncertainties, other pockets of the economy are thriving. The labor market <a href="https://www.businessinsider.com/march-jobs-report-431000-payrolls-hiring-unemployment-rate-labor-market-2022-3">has recouped 93% of the jobs</a> it lost at the start of the coronavirus recession, and its rebound is broadly running <a href="https://www.businessinsider.com/labor-market-recovery-likely-slowing-not-bad-jobs-report-march-2022-4">three times faster</a> than the recovery from the 2008 financial crisis.Consumer spending, meanwhile, has staged a V-shaped recovery and then some. Retail sales <a href="https://www.businessinsider.com/retail-sales-march-consumer-spending-inflation-stores-restaurants-recovery-report-2022-4">rose another 0.5% in March</a> to a record $665.7 billion, according to a Census Bureau report published Thursday morning. While the gain was smaller than that seen in February, it showed spending still sitting above its pre-pandemic trend amid strong inflation and continued supply-chain pressures.How Americans feel about the economy could simply come down to which areas they're looking at. As inflation crept to four-decade highs through the fall, <a href="https://www.businessinsider.com/inflation-recession-talk-creating-vibe-shift-economy-2022-4">fears of a new recession fueled widespread pessimism</a>. Yet new data shows the labor market continuing to thrive and spending still growing. Even some data in the latest inflation report suggests March <a href="https://www.businessinsider.com/inflation-cpi-march-bright-spots-signal-cooling-core-price-growth-2022-4">could represent the peak of the price-growth problem</a>.It's too early to say whether the April sentiment data marks an inflection point or not, but it signals that, for now, Americans are looking on the brighter side of the recovery.

Americans suddenly feel much better about the economic rebound

<ul class="summary-list"><li>Thirty-two percent of Americans expect their finances to worsen through the year, according to the <keyword id="12002054" type="UNKNOWN" weightage="60" keywordseo="university-of-michigan" source="Orion">University of Michigan</keyword>.</li><li>That's the largest share since the university's sentiment survey started in the mid-1940s.</li></ul>Between <a href="https://www.businessinsider.com/february-jobs-report-678000-payrolls-labor-shortage-economy-unemployment-rate-2022-3">slowing wage growth</a>, <a href="https://www.businessinsider.com/russia-ukraine-crisis-worsen-shipping-seafarer-labor-shortage-supply-chain-2022-2">widespread supply chain problems</a>, and <a href="https://www.businessinsider.com/inflation-cpi-price-growth-gas-prices-february-2022-3">sky-high inflation</a>, it's no surprise Americans aren't feeling great about the <keyword id="11893570" type="UNKNOWN" weightage="100" keywordseo="economy" source="Orion">economy</keyword>.Yet new data from the <a href="http://www.sca.isr.umich.edu/">University of Michigan</a> reveals a large swath of the population bracing for a tougher time ahead. Thirty-two percent of surveyed adults expect their finances to worsen over the next 12 months, the university's Surveys of Consumers said in a Friday report. That's the largest recorded share since the survey started in the mid-1940s.The slowing wage boom is also cause for greater concern. Half of surveyed households anticipate their <keyword id="11894140" type="UNKNOWN" weightage="60" keywordseo="inflation" source="Orion">inflation</keyword>-adjusted incomes to drop through the year, according to the report, meaning inflation will outpace wage growth. The reading comes after government data showed the average hourly wage <a href="https://www.businessinsider.com/wage-growth-slowing-inflation-stagflation-risk-easing-february-jobs-report-2022-3">rising by just $0.01, or 0.03%</a><a href="https://www.businessinsider.com/wage-growth-slowing-inflation-stagflation-risk-easing-february-jobs-report-2022-3">, in February</a><a href="https://www.businessinsider.com/wage-growth-slowing-inflation-stagflation-risk-easing-february-jobs-report-2022-3"></a>, badly missing forecasts and signaling the historic pay gains seen through the pandemic could be fading.Americans' overall moods broadly worsened over the past month according to the University of Michigan. <keyword id="11931580" type="UNKNOWN" weightage="60" keywordseo="consumer-sentiment" source="Orion">Consumer sentiment</keyword> sank to 59.4 from 62.8 in March. That's also down from a year-ago reading of 84.9 and marks the most pessimistic sentiment in nearly 11 years. The only two periods to feature bleaker financial sentiments since the survey was first conducted were the recession of the early 1980s and the Great Recession."Inflation was mentioned throughout the survey, whether the questions referred to personal finances, prospects for the economy, or assessments of buying conditions," <keyword id="13053800" type="UNKNOWN" weightage="60" keywordseo="richard-curtin" source="Orion">Richard Curtin</keyword>, chief economist at the Surveys of Consumers, said.Americans' soured economic sentiment comes despite an otherwise healthy recovery. The labor market is <a href="https://www.businessinsider.com/february-jobs-report-economic-outlook-labor-market-recovery-fastest-ever-2022-3">rebounding three times faster</a> than it did after the financial crisis. Gross domestic product <a href="https://www.businessinsider.com/us-gdp-q2-economic-output-complete-recovery-vaccination-reopening-infrastructure-2021-7">surpassed its pre-crisis high in 2021</a> and is still estimated to land above trend through 2022. And even as prices leap higher, Americans' spending at stores and restuarants <a href="https://www.businessinsider.com/retail-sales-february-inflation-stores-restaurants-consumer-spending-economic-recovery-2022-3">hit a new record high</a> in February.Still, inflation has overpowered those rosier trends and left Americans feeling dismal. Price growth was the biggest driver of rising pessimism through March, Curtin said, adding that respondents predicted an inflation rate of 5.4% over the next year, the highest since 1981. Those expectations could worsen the inflation problem further, as fear of soaring prices can serve as a sort of self-fulfilling prophecy and prompt companies to charge more.Keeping those expectations anchored will be key for policymakers if they aim to keep inflation from staying permanently high, Curtin said."Confidence that economic policies will resolve the problem is essential," he said. "Unfortunately, half of all consumers unfavorably assessed current policies, more than three times the 16% who rated them favorably."

A third of Americans expect their finances to get worse this year

<ul><li>Urban Indians’ festive spending intent has improved since last year.</li><li>YouGov’s Diwali Spending Index shows a higher buying propensity than last year.</li></ul>The festive season has commenced in India and now everyone is eagerly awaiting the festival of lights. Although brands are betting big on Diwali to light up sales, are consumers ready to shop again? YouGov’s Diwali Spending Index, an indicator of the spending intent among Indian consumers, reveals a spending propensity of 90.71 among urban Indians this festive season. Even though it is below average (of 100), the intent to spend is higher than last time (80.96), indicating a recovering appetite to spend among urban Indians. <div type="image" title="image005" msid="85999954" hostid="261"></div> The Index is calculated as a weighted impact of 10 factors (like increase in gross household income, increase/decrease in household expenses, intent to invest or splurge and general optimism towards economy) on their intent to spend more/less this Diwali season versus last. Among the 10 factors, the number one driver for people to spend more this year is their anticipation for the festival. Nearly a third (31%) agreed with the statement “I am looking forward to Diwali this year since the rest of the year has been quite dull because of Covid-19”. With nearly two years having passed and shoppers having no opportunity to spend, this is likely to be the factor that has improved the overall sentiment to spend more this Diwali as compared to last. Even though there is improvement, the biggest barrier to spending continues to be the same as last year. Close to 50% respondents last year said they are more careful with their finances today than they used to be in the past. And now a similar proportion (43.6%) said the same thing, indicating the fear of the uncertain is still strong among the public. Given 2021 witnessed a devastating wave of covid, despite excitement among the public for Diwali this year, the consumer sentiment is yet to match the pre-pandemic times. <div type="image" title="image006" msid="85999964" hostid="261"></div> Data shows that only 17% of the respondents said they were likely to spend more than last year during Diwali in 2020. In 2021, this number has increased and now 29% said they will spend more this year. While the spending intent is yet to go back to normal (pre-pandemic times), we see a marked improvement since last year and this is good news for brands trying to woo consumers this festive season. In YouGov’s Diwali series, we will see the impact of the pandemic on consumers’ buying sentiment across different sectors to see if the upcoming festive season can be a game-changer for businesses and brands.Methodology: This survey has been conducted on a sample of 2000 respondents on the YouGov India’s online panel in August 2021. The sample primarily constitutes consumers from NCCS A and B; and matches the population numbers of urban India in terms of basic demographics like age, gender, regions and city tiers. The Index is calculated as a weighted impact of 10 factors (like increase in gross household income, increase/decrease in household expenses, intent to invest or splurge and general optimism towards economy) on their intent to spend more/less this Diwali season versus last. The Index has been derived using Ordinal Logistic Regression and Johnson’s Relative Weight modelling to understand the relationship between each of the factors and overall intention to spend more this Diwali amongst consumers. For the calculation of the final Index, two sets of weighted averages were calculated basis respondent data – 1) assuming an equal weightage for all factors (which has been used as the base); 2) with actual weightages for each of the factor derived from the regression and JRW analysis. The final Index = Actual weighted spending intent / Hypothetical spending intent assuming equal weightage to all 10 predictors

Despite excitement among the public for Diwali this year, the consumer sentiment is yet to match the pre-pandemic times: YouGov Report

<ul><li>46% of families will shop clothes over big ticket items on account of Dusshera/Diwali.</li><li>76% of the families will use their personal savings for making purchases this festive season.</li></ul><keyword id="5043207" type="General" weightage="20" keywordseo="axis-my-india" source="Orion">Axis My India</keyword>, a consumer data intelligence company, released its findings of the India <keyword id="991354" type="General" weightage="20" keywordseo="consumer-sentiment-index" source="Orion">Consumer Sentiment Index</keyword> (CSI), a monthly analysis of consumer perception on a wide range of issues, for the month of September. The net CSI score, calculated by percentage increase minus percentage decrease in sentiment, was recorded at +7, rising at a constant pace over the last three months, indicative of a positive shift in consumer consumption metrics. The sentiment analysis delves into 5 relevant sub-indices – Overall household spending, spending on essential and non-essential items, spending on healthcare, media consumption habits &amp; mobility trends. This month, Axis My India’s <keyword id="412367" type="General" weightage="20" keywordseo="consumer-sentiment" source="Orion">Consumer Sentiment</keyword> Index also delved deeper to understand perception around festival spends, pre and post Covid behavioural changes in terms of online purchase and UPI/wallet payment and citizen’s interest in IPL. The surveys were carried out via Computer Aided Telephonic Interviews with a sample size of 10639 people. 59% belonged from Rural India while 41% belonged from urban counterparts covering 28 states and 8 union territories. Commenting on the September report, <keyword id="182602" type="General" weightage="20" keywordseo="pradeep-gupta" source="Orion">Pradeep Gupta</keyword>, CMD, Axis My India, said, “As the pandemic retreats, we are seeing a steady return to normalcy, but with a cautious control over spending considerations. This is highlighted in the survey as 46% of the respondents will prefer spending on small ticket items such as clothes, while only 11% of the respondents will consider buying a two-wheeler or car. Expenditure on household essentials is more or less same since the last two months. However, expenditure on healthcare decreased compared to last month, suggesting people are being decreasingly affected by the pandemic. While 27% respondents reported an increase in UPI transactions, almost 49% still don’t use UPI/Wallets, suggesting a tremendous opportunity in digital payments. IPL has proved its unparalleled reach and what is emerging as a trend is that audiences are increasingly viewing it on digital especially in tier 3/rural markets which still have electricity cuts &amp; are single TV households." Key findings: ·Overall household spending has increased for 56% of families which is same as last month. ·The spends increase on essentials like personal &amp; household care is at 45%. The net score is almost the same as last month which is at +20. ·Spends on non-essential &amp; discretionary products like AC, Car, Refrigerator increased for 19% of families. This increase is highest in North &amp; East whereas the increase in South is only 8%. This increase still reflects an overall decrease by 2 percentage points from the previous month which stood at 21%. This can also be because 20th Sep – 6th Oct is considered the ‘Shradh period’ when high value purchases are postponed. The non-essentials September net score is at +7. ·Health continues to be an important consideration, with consumption on health-related items being increased for 44% of families and decreased only for 19% families. The health score which has a negative connotation i.e. the lesser the spends on health items the better the sentiments, has a net score value of -25. ·Consumption of media reflects increase for 26% families, with an increase of 1 percentage point over last month &amp; consumption remained same for 48%. Net score has improved from -3 last month to the base value of 0 this month. ·Constant improvement in mobility net score is being recorded since past three months which indicates a steady return to normalcy. In terms of mobility 88% families are saying they are going out the same or more on short vacations/mall/restaurants, with the overall mobility score is at -5 which is an improvement over last month which was at -8. This reflects a slight progress in people’s sentiments in terms of conducting outside activities. On topics of current national interest: ·When asked on shopping plans for Dusshera/Diwali, 46% of families said they will shop clothes while only 11% intend to buy a 4-wheeler or a 2-wheeler. More than 88% of the families denied any interest in buying white goods (AC, TV, Washing Machine, and Refrigerator) or jewellery this festive season. In addition, 92% showcased negative sentiment towards buying home, plot, or a commercial property. The consumer sentiment for the month also reflects that 76% of the families will use their personal savings for making these purchases while only 21% would prefer taking loan from the bank or financial companies. This gives an indication that while buying spirit is moderate this festive season, the ticket size for purchase still remains small reflecting a cautious spending behaviour without denting one’s personal savings. ·In terms of online shopping behaviours 33% are buying electronics like laptop, mobile etc. online while high value items like jewellery and groceries (fresh food, rice, oil and meat) are still bought physically, indicating the view of 90% and 92% of the consumers respectively. Furthermore, banking and investment behaviour reflect a combination of both offline and online hybrid behaviour standing at 19%. ·40% of Indian’s mentioned that they have watched IPL at least once. When asked, where will you continue to watch the remaining season of IPL, 31% of those who watching mentioned that they are watching it online. Interestingly percentage of audience watching online is higher in Rural India. ·Reflecting a transformation in consumer payment behaviour in the post-covid period, 27% have said that they have increased their usage of UPI/wallet payments (Paytm/Phonepe, Google Pay) while 49% still don’t use these online transaction mediums. Interestingly the increase in usage of UPI payments is gradually decreased with increase in age of respondents. The increase is highest for the age group of 18-25 years which is at 36%.

40% of India has watched IPL at least once, 31% of those watched have viewed it on a digital platform: Report

<ul class="summary-list"><li>Only 29% of Americans say it's a good time to buy a home in September, according to the <keyword id="12002054" type="UNKNOWN" weightage="60" keywordseo="university-of-michigan" source="Orion">University of Michigan</keyword>.</li><li>That's the smallest share since 1982, and signals soaring prices are slamming peoples' buying plans.</li><li>Beyond homebuying attitudes, Americans are pessimistic on the US recovery as Delta cases surge.</li></ul>Last year, everyone was excited to buy a house. This fall, they're pissed.Just 29% of Americans said in September that it was a good time to buy a home, according to data from the University of Michigan's Surveys of Consumers. That's the smallest share since 1982 and close to record lows. The majority was excited about homebuying just months ago: 62% said it was a good time at the start of the year and 65% said so in March 2020, when the pandemic first slammed the US.Last year's euphoria has curdled into a nationwide home shortage, largely thanks to widespread working from home and record low mortgage rates. The mismatch between supply and demand has driven home values to suffocating highs, particularly for those looking to buy their first house. It's been especially tough for millennials, who are entering peak homebuying years and have few good options. For instance, prices rose 18.6% year-over-year in June, according to the <a href="https://www.spglobal.com/spdji/en/index-announcements/article/sp-corelogic-case-shiller-index-shows-annual-home-price-gain-topped-186-in-june">S&amp;P CoreLogic US Home Price Index</a>, marking a third straight month of record home inflation.A rebound in home construction could cool the price surge, but contractors aren't rising to the occasion. Housing starts have hovered near pre-pandemic levels despite inventories still at historic lows. Economists expect Tuesday data to show new home starts climbing slightly in August to an annualized rate of 1.56 million homes. Yet that still pales in comparison to the annualized pace of 2 million homes needed to counter the shortage, <a href="https://www.businessinsider.com/housing-market-short-millions-homes-homebuilding-real-estate-nar-report-2021-6">according to the National Association of Realtors</a>.Economists at Fannie Mae lowered their forecast for 2022 home sales on Monday <a href="https://www.fanniemae.com/research-and-insights/forecast">to -1.8% from -1.6%,</a> thanks to soaring prices and poor new construction outlooks. For a healthier market to emerge, the country needs many more homes, they said."We believe home purchase demand is cooling somewhat as the <keyword id="11957054" type="UNKNOWN" weightage="60" keywordseo="housing-market" source="Orion">housing market</keyword> normalizes," the economists said. "Still, we continue to see the primary impediment to sales being a lack of homes for sale."<h2>Not just homes, but cars and goods, too</h2>Americans aren't just balking at <keyword id="11985139" type="UNKNOWN" weightage="60" keywordseo="home-prices" source="Orion">home prices</keyword>. Their outlook toward the entire <keyword id="11893570" type="UNKNOWN" weightage="100" keywordseo="economy" source="Orion">economy</keyword> is abysmal.The University of Michigan's <keyword id="11931580" type="UNKNOWN" weightage="60" keywordseo="consumer-sentiment" source="Orion">consumer sentiment</keyword> index rose to 71 from 70.3 in an early September reading, bringing it just above decade-lows. And while the university's measure of future economic expectations improved, Americans' assessments of the current situation slid to the worst since April 2020.Within the broad slump is a dismal outlook toward spending. Attitudes for buying durable goods - think appliances, electronics, and furniture - reached the most negative level since 1980, according to the university. Feelings toward buying vehicles also closed in on record lows.Taken together, the gloomy attitudes show the American dream in tatters. Homes aren't affordable. Inflation continues to outpace wage growth, leaving Americans with eroded buying power after living through a historic pandemic. Settling down and building a life is costlier than ever, especially for millennials looking to replicate the cycle Gen X enjoyed before them.Instead of cheering on the recovery, Americans are fearing another 2020-style COVID recession. Economic data <a href="https://www.businessinsider.com/delta-economic-recovery-jobs-report-august-covid-cases-virus-recession-2021-9">has backed up their soured outlooks</a>, and economists should anticipate slower growth in home sales and overall spending through the rest of the year, Richard Curtin, chief economist at the university's Surveys of Consumers, said.To be sure, it's unlikely another COVID recession will emerge. Slower growth is still growth, and banks expect the economy to continue healing through the Delta wave. But as more millennials look to buy homes, the lack of affordable options stands to leave an entire generation struggling to climb the socioeconomic ladder.

You Searched For "overall consumer sentiment score" and got 12 results

Carmakers expect festive period to bring in robust sales, improve overall buyer sentiment

PTI

Despite budget provisions, residential housing market will see sales growth, notes recent report by Knight Frank

ANI

China's luxury slump is trickling down to other consumer companies

Madeline Berg,Huileng Tan

Overall consumer sentiment up by 5.5 points compared to July, signaling a cautious but steady improvement due to festive season: Report

BI India Partner

India switches on its shopping mode as festivals approach, sales set to jump 20%

Katya Naidu

America's shopping spree is over and retailers are facing a new world of cautious consumers

Jennifer Sor

Wages have outpaced inflation since 2020 but many consumers still feel burdened by prices

John Towfighi

Americans suddenly feel much better about the economic rebound

Ben Winck

A third of Americans expect their finances to get worse this year

Ben Winck

Despite excitement among the public for Diwali this year, the consumer sentiment is yet to match the pre-pandemic times: YouGov Report

BI India Partner

40% of India has watched IPL at least once, 31% of those watched have viewed it on a digital platform: Report

BI India Partner

Americans are pissed about the housing market - they haven't hated it this much in 4 decades

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