Latest news with #ConsumerSpending
The Independent
11 hours ago
- Business
- The Independent
Business news live: FTSE 100 reaction to Rolls Royce and Unilever profits plus latest Nationwide house price data
Earnings season among notable FTSE 100 firms continues on Thursday with Rolls Royce, Shell and Unilever all in the frame - the latter being a good indicator of consumer spending power this year. There are also reports due from bank Standard Chartered, miner Endeavour and owner of the stock exchange itself, the London Stock Exchange Group. London's benchmark index finished largely flat on Wednesday and is slightly down for the week so far, but with the US economy growing more than expected in the second quarter of 2025 and further trade clarity coming with the EU and India arranging deals, it's no surprise to see many indices at or near all-time highs. Meanwhile, Thursday also brings the latest house price data from Nationwide, while CASS have revealed which UK banks benefited most from customers switching current accounts over the past three months.
Al Jazeera
a day ago
- Business
- Al Jazeera
US GDP grows, masking broader economic downturn
Economic growth in the United States has bounced back more than expected in the second quarter, but the data grossly overstates the economy's health as declining imports accounted for the bulk of the improvement and domestic demand rose at its slowest pace in two and a half years. The US economy grew by 3 percent at an annualised pace in the second quarter, according to Commerce Department released data on Wednesday, beating economists' expectations after a contraction of 0.5 percent in the first quarter of the year. Growth in consumer spending ticked up moderately by 1.4 percent across both goods and services, after almost braking in the first quarter as US President Donald Trump's tariffs created uncertainty. Imports dropped sharply – after the rush to stockpile in the first quarter in an effort to beat tariffs – which added 5 percent to growth. The White House touted the report, with press secretary Karoline Leavitt saying in a statement that 'President Trump has reduced America's reliance on foreign products, boosted investment in the US, and created thousands of jobs — delivering on his promise to Make America Wealthy Again. The data is clear, and there are no more excuses — now is the time for 'too late' Powell to cut the rates!' Jerome Powell, chair of the US Federal Reserve, has been under pressure from Trump for months cut interest rates but has repeatedly said the Fed will wait to see how the economy evolves under the tariff pressures before deciding if it will reduce its key interest rate. 'Policy-initiated slowdown' Despite claims that there is boosted investment in the US, the data says otherwise as private sector investment plunged 15.6 percent in the second quarter. 'Today's GDP release only further confirms that we're in the midst of a policy-initiated slowdown. The top-line number looks superficially better but only because of some snapback from the tariff-driven quirks to trade and inventories that temporarily weighed on output in Q1,' Skanda Amarnath, executive director of Employ America and former Federal Reserve economist, said in a statement provided to Al Jazeera. This comes alongside a drop in inventories of 3.2 percent and a slowdown in non-durable goods manufacturing, which grew at a pace of 1.3 percent, down from 2.3 percent in the previous quarter. 'This second quarter estimate reflects this administration's chaotic trade environment with a decrease in imports through a decrease in nondurable goods. In addition, there has also been a decrease in exports, led by cars, engines, and parts, a reflection of existing tariffs on steel, aluminum, and automobiles,' Gbenga Ajilore, chief economist at the Center on Budget and Policy Priorities, said in a statement provided to Al Jazeera. Contrary to the White House's claims, job growth also slowed. Last month's US Labor Department jobs report showed limited traction in sectors impacted by tariffs, including wholesale trade. The Labor Department's July report is slated to be released on Friday. The ADP private sector payroll report released on Wednesday showed 104,000 jobs added last month and revised figures from the previous month to a decline of 23,000 jobs. The gross domestic product (GDP) report showed that final sales to private domestic purchasers — otherwise known as business and consumers — showed an expansion of 1.2 percent for the quarter, marking a slowdown from the 1.9 percent in the first quarter of the year. 'This morning's report makes clear that tariffs and uncertainty were slowing the economy even in the first half of the year,' Daniel Hornung, senior fellow at MIT and former deputy director of the National Economic Council, said in a statement provided to Al Jazeera. US markets remained relatively flat on the GDP report as investors waited for the Federal Reserve's policy decision on interest rates, which is widely expected to be held steady at 4.25-4.50 percent.
Yahoo
21-07-2025
- Business
- Yahoo
Retail profit warnings more than double as high street pressures mount
Profit alerts among retailers more than doubled in the second quarter as consumers reined in their spending and firms faced soaring wage costs, according to a report. The latest report from EY-Parthenon also revealed that overall profit warnings among UK-listed firms jumped by a fifth year-on-year in the second quarter – with a record proportion citing policy changes and geopolitical uncertainty as the leading factor. The data showed that seven UK-listed retailers, including supermarkets, cut profit guidance between April and June. Britain's retail sector has come under significant pressure since last autumn's Budget move to hike National Insurance Contributions (NICs) and the minimum wage, both taking effect in April. But EY said the high street was also facing tough consumer spending challenges, with shoppers cutting back and focusing on value. EY partner Silvia Rindone said the spike in retail warnings 'highlights both softening consumer demand and the deeper structural headwinds facing the sector'. 'Retailers we speak to tell us that falling sales are currently indicative of a longer-term shift, with consumers becoming more value-focused and less brand-loyal, which leaves cost-pressured retailers in a bind,' she said. Tariff woes sparked by US President Donald Trump waging a trade war also featured heavily in the report, contributing to a rise in the number of alerts more widely across corporate plc. The report found that the number of profit warnings issued by UK-listed companies rose by 20% to 59 in the second quarter compared with 49 a year ago. The top factor was policy change and geopolitical uncertainty, cited in nearly half (46%) of all warnings – up from 4% a year earlier and the highest since the study was launched over 25 years ago. Over one in three (34%) warnings flagged tariff-related impacts, such as weaker demand, supply chain disruption and volatility in currency movements. The proportion of warnings to cite contract and order cancellations or delays remained at a record high of 40% in the quarter. Jo Robinson, EY-Parthenon partner and turnaround and restructuring strategy leader, said: 'The latest profit warnings data reflects the scale of persistent uncertainty and how heavy it continues to weigh on UK businesses. 'While this uncertainty has been a recurring theme since mid-2024, it has intensified so far this year – driven largely by geopolitical tensions and policy shifts – compounding pressure on both earnings and forecasts. 'While the announcement of global tariffs has clearly played a part in amplifying uncertainty, they are just one factor among broader geopolitical and policy upheaval.'
Yahoo
20-07-2025
- Business
- Yahoo
Retail profit warnings more than double as high street pressures mount
Profit alerts among retailers more than doubled in the second quarter as consumers reined in their spending and firms faced soaring wage costs, according to a report. The latest report from EY-Parthenon also revealed that overall profit warnings among UK-listed firms jumped by a fifth year-on-year in the second quarter – with a record proportion citing policy changes and geopolitical uncertainty as the leading factor. The data showed that seven UK-listed retailers, including supermarkets, cut profit guidance between April and June. Britain's retail sector has come under significant pressure since last autumn's Budget move to hike National Insurance Contributions (NICs) and the minimum wage, both taking effect in April. But EY said the high street was also facing tough consumer spending challenges, with shoppers cutting back and focusing on value. EY partner Silvia Rindone said the spike in retail warnings 'highlights both softening consumer demand and the deeper structural headwinds facing the sector'. 'Retailers we speak to tell us that falling sales are currently indicative of a longer-term shift, with consumers becoming more value-focused and less brand-loyal, which leaves cost-pressured retailers in a bind,' she said. Tariff woes sparked by US President Donald Trump waging a trade war also featured heavily in the report, contributing to a rise in the number of alerts more widely across corporate plc. The report found that the number of profit warnings issued by UK-listed companies rose by 20% to 59 in the second quarter compared with 49 a year ago. The top factor was policy change and geopolitical uncertainty, cited in nearly half (46%) of all warnings – up from 4% a year earlier and the highest since the study was launched over 25 years ago. Over one in three (34%) warnings flagged tariff-related impacts, such as weaker demand, supply chain disruption and volatility in currency movements. The proportion of warnings to cite contract and order cancellations or delays remained at a record high of 40% in the quarter. Jo Robinson, EY-Parthenon partner and turnaround and restructuring strategy leader, said: 'The latest profit warnings data reflects the scale of persistent uncertainty and how heavy it continues to weigh on UK businesses. 'While this uncertainty has been a recurring theme since mid-2024, it has intensified so far this year – driven largely by geopolitical tensions and policy shifts – compounding pressure on both earnings and forecasts. 'While the announcement of global tariffs has clearly played a part in amplifying uncertainty, they are just one factor among broader geopolitical and policy upheaval.'
The Independent
20-07-2025
- Business
- The Independent
Retail profit warnings more than double as high street pressures mount
Profit alerts among retailers more than doubled in the second quarter as consumers reined in their spending and firms faced soaring wage costs, according to a report. The latest report from EY- Parthenon also revealed that overall profit warnings among UK-listed firms jumped by a fifth year-on-year in the second quarter – with a record proportion citing policy changes and geopolitical uncertainty as the leading factor. The data showed that seven UK-listed retailers, including supermarkets, cut profit guidance between April and June. Britain's retail sector has come under significant pressure since last autumn's Budget move to hike National Insurance Contributions (NICs) and the minimum wage, both taking effect in April. But EY said the high street was also facing tough consumer spending challenges, with shoppers cutting back and focusing on value. EY partner Silvia Rindone said the spike in retail warnings 'highlights both softening consumer demand and the deeper structural headwinds facing the sector'. 'Retailers we speak to tell us that falling sales are currently indicative of a longer-term shift, with consumers becoming more value-focused and less brand-loyal, which leaves cost-pressured retailers in a bind,' she said. Tariff woes sparked by US President Donald Trump waging a trade war also featured heavily in the report, contributing to a rise in the number of alerts more widely across corporate plc. The report found that the number of profit warnings issued by UK-listed companies rose by 20% to 59 in the second quarter compared with 49 a year ago. The top factor was policy change and geopolitical uncertainty, cited in nearly half (46%) of all warnings – up from 4% a year earlier and the highest since the study was launched over 25 years ago. Over one in three (34%) warnings flagged tariff-related impacts, such as weaker demand, supply chain disruption and volatility in currency movements. The proportion of warnings to cite contract and order cancellations or delays remained at a record high of 40% in the quarter. Jo Robinson, EY-Parthenon partner and turnaround and restructuring strategy leader, said: 'The latest profit warnings data reflects the scale of persistent uncertainty and how heavy it continues to weigh on UK businesses. 'While this uncertainty has been a recurring theme since mid-2024, it has intensified so far this year – driven largely by geopolitical tensions and policy shifts – compounding pressure on both earnings and forecasts. 'While the announcement of global tariffs has clearly played a part in amplifying uncertainty, they are just one factor among broader geopolitical and policy upheaval.'
