Exceeding even the most optimistic forecast, consumer confidence reached a nearly seven year high in July. There’s a message in this for those following the jobs market, as Nina Glinski reports for Bloomberg. Market analyst Jeremy Grantham believes we could soon see an increase in financial deals “to levels never seen before”. He cautions about the potential bubble and a possible market decline. The USDA has released its first 2015 forecast about food inflation. Ros Krasny of Reuters writes about the effects of widespread drought and disease on the numbers and how supermarkets may strive to keep prices competitive.
Consumer Confidence In U.S. Jumps To Highest Since 2007– Confidence among consumers soared in July to an almost seven-year high as increased employment opportunities led to brighter views of the U.S. economy. Neil Dutta, head of U.S. economics at Renaissance Macro Research LLC in New York said, “The fact that confidence is rising at a fairly steady rate implies that employment growth is going to continue at a fairly healthy rate.”
Bubbles Again: Setting Up For A Deal Frenzy– Jeremy Grantham, founder of the investment firm GMO, cautions about a bubble if the S&P 500 gets to around 2250. It’s now at 1977 and would have to increase 14% to get to 2250. He also says, “perhaps the single best reason to suspect that a severe market decline is not imminent is the early-cycle look that the economy has.” So although he cautions about potential bubbles he is not saying one is imminent. You’ll find his thoughts beginning on page six of the linked article.
Food Inflation Should Drop Next Year, USDA Predicts– Food inflation, which includes items bought in grocery stores and in restaurants, is seen at 2.5 percent to 3.5 percent this year. In its first forecast for 2015, the USDA says to expect the inflation to subside to two to three percent.
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