Fed Beige Book Reveals Slower Consumer Spending, Higher Delinquencies
Portfolio Pulse from Piero Cingari
The Federal Reserve Beige Book reveals a moderate growth pace in the economy during July and August, but also shows signs of a slowdown in discretionary consumer spending. Consumers are increasingly resorting to borrowing to sustain their spending patterns, which could impact companies in the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY). The report also highlights challenges in the housing market, which could affect the Real Estate Select Sector SPDR Fund (NYSE:XLRE).
September 06, 2023 | 6:44 pm
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NEGATIVE IMPACT
Challenges in the housing market could negatively impact the Real Estate Select Sector SPDR Fund.
The report highlights obstacles in the construction of affordable housing units due to elevated financing costs and rising insurance premiums. This could have ripple effects on real estate investments and related industries, such as the Real Estate Select Sector SPDR Fund.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The slowdown in discretionary consumer spending could negatively impact companies in the Consumer Discretionary Select Sector SPDR Fund.
The report indicates that consumers are increasingly resorting to borrowing to sustain their spending patterns. This could lead to a decrease in discretionary spending, which would negatively impact companies in the Consumer Discretionary Select Sector SPDR Fund.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80