c-suite speaks
The dog days of summer continue to see sluggish economic growth, with the longed-for rebound slow to materialize. It is difficult to imagine any acceleration in growth rates without inflation, says Scott Krisiloff, CFA, in his latest roundup from the C-suite.
There were signs that inventories have been sufficiently depleted, and that industry is cautiously beginning to restock again. However, Scott Krisiloff, CFA, cautions, if inventories are restocked and demand doesn't concurrently rebound, companies will shortly find themselves in a precarious position once again.
Department stores don't provide the same read on the economy as they did in the past, but, overall, activity is still depressed, says Scott Krisiloff, CFA. Yet there are signs of a possible upturn. And while the presidential election has been a source of uncertainty, the polls may be starting to give an indication of who is likely to win without having to wait until Election Day.
The potential fallout from the US presidential election is weighing on the minds of CEOs, but most think it will not have too much of an effect on the economy — it's going to be lousy regardless.
While we won't refer to this environment as being expansionary, there is some growth, and oil prices may have finally bottomed out.
John Maynard Keynes's legendary "animal spirits" appear to have returned to the US economy.
The United States has been in an economic malaise for almost two years, but the markets want to believe the economy is emerging from its doldrums. We'll get a much better sense as to whether this is another false start during earnings season.
"The UK can handle change," says Mark Carney, governor of the Bank of England, in the aftermath of Brexit. However, "uncertainty over the pace, breadth and scale of these changes could weigh on our economic prospects for some time."
Recent statistics suggest that consumers are in pretty healthy shape, but macro uncertainty may still be causing some hesitation. The US Federal Reserve is also showing some hesitation, as it neglected to raise rates last week. And while Fed chair Janet Yellen reiterated that every meeting is a "live" meeting, there are some signs that even the Fed may be starting to expect that rates will be lower for some time more.
Macroeconomic insights continue to point toward an improving economy, says Scott Krisiloff, CFA, in his latest rundown of news from the C-suite. But Silicon Valley is increasingly on the defensive.