Don't Underestimate The American Consumer
Portfolio Pulse from Sam Ro
The S&P 500 rose 1.6% last week, with a focus on the American consumer as personal consumption accounts for 71% of GDP. Retail sales in April increased 0.4% to $686.1 billion, and consumers still have an estimated $500 billion in excess savings. However, economic growth is cooling, and consumer finances are normalizing.
May 22, 2023 | 1:30 pm
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NEUTRAL IMPACT
The S&P 500 rose 1.6% last week, driven by strong consumer spending and excess savings. However, economic growth is cooling, and consumer finances are normalizing, which may impact the index's performance.
The S&P 500's performance is directly tied to the health of the US economy, which is currently driven by strong consumer spending and excess savings. However, as economic growth cools and consumer finances normalize, this may lead to a slowdown in the index's performance. The impact is neutral as the index may continue to rise, but at a slower pace.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80