Overseas Headlines- August 28, 2020

August 28, 2020

United States:

U.S. Consumer-Spending Rebound Cools, Hinting at More Risk Ahead

“The rebound in U.S. consumer spending moderated in July amid a surge in virus cases, with outlays at risk of further softening after cuts in supplemental relief payments for jobless Americans. Household outlays rose 1.9% from the prior month following an upwardly revised 6.2% rise in the prior month, a Commerce Department report showed Friday. That compared with economists’ estimates for a 1.6% gain. Personal incomes rose 0.4%, topping expectations for a slight decline.”



Euro-Area Economic Confidence Rises, But Job Worries Remain

“Economic confidence in the euro area continued to improve in August, with companies from manufacturing to services benefiting from higher demand following the end of pandemic lockdowns. A European Commission sentiment index rose for a fourth month, exceeding all but three estimates in a Bloomberg survey, and registered sustained gains in industry, retail trade and particularly services. Companies’ employment expectations rose, but job cuts in recent months across the continent meant consumers remain worried about the labor market.”



Abenomics Era Ends With Japan’s Economy Back at Square One

“The almost 8-year era of Abenomics draws to a close with Japan’s economy right back at square one. Prices are flat lining and the deflationary mindset seems as entrenched as ever. Many of the women who entered the labor market under Prime Minister Shinzo Abe’s tenure are losing jobs as Covid-19 batters the economy. Households and companies are in saving mode again amid the pandemic, forcing the government to borrow heavily to cushion demand.”


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