Overall inflation remains quite benign. Companies selling to consumers and businesses have limited pricing power.
Consumers seem to have rebounded from the low point of spirits this year reached right after the hurricanes struck. But they are still somewhat anxious about the energy situation and how that will fare in the coming months.
Retailers are biting their nails because of the large decline in consumer confidence. But it remains to be seen whether consumers will vote with their feet.
The improving job market is boosting consumer sentiment. Employees are beginning to see a somewhat better chance of receiving wage increases this year. If oil prices stabilize as we expect, consumers this year should see their paychecks stay ahead of inflation.
We had expected a snap-back in consumer spending after a decline in May, and that's what these numbers showed, ... Consumers appeared to be optimistic in their spending, despite the stock market and the ongoing corporate frauds and malfeasance.