Wall Street Awaits Inflation Clues Amid Slumping Consumer Confidence
Next week on Wall Street, investors will be keeping a close eye on two key reports that could provide insight into the current state of the US economy. The latest consumer confidence report from The Conference Board is set to be released on Tuesday, and analysts expect it to show that confidence in the US economy has continued to fall in August after slipping in July.
Consumer confidence has been a concern throughout much of this year due to stubbornly high inflation rates. One factor contributing to these higher prices is the ongoing conflict with Iran, which has led to a reduction in global oil supplies and subsequently driven up gasoline costs for households. This increase in shipping costs has also had a ripple effect on various product prices.
On Wednesday, another important report will be released: the personal consumption expenditures (PCE) index for July. As the Federal Reserve's preferred measure of inflation, this data point will provide further insight into whether the current rate of 3%+ inflation is starting to recede. The Fed has been struggling to bring inflation back down to its target rate of 2%, and this report may offer some clarity on their next steps.