The past two years have been very good for the U.S. economy. Unemployment has crept up a bit, but not by a lot, and the employed share of Americans in their prime working years is higher than, to make a random comparison, it was at any point during the Trump years. At the same time, […]
Read MoreTag: Consumer Behavior
Elon Musk’s Politics May Be Pushing Some Buyers Away From Tesla
Few auto executives are as closely identified with the companies they manage as Elon Musk, the chief executive of Tesla, is. And probably none are more prolific in broadcasting their political views on social media. But as Mr. Musk’s public persona has become increasingly right wing, Tesla appears to be paying a price in sales, […]
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China Dangled Rebates to Lure People to Spend. It’s Not Enough.
Four months ago, China’s leaders announced what seemed like a straightforward and proven plan to recharge the economy: Subsidize consumers who want to replace old cars and household appliances. The early results are not promising. Only 113,000 cars qualified for trade-in subsidies through June 25 — a blip in a country where monthly sales exceed […]
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China’s Lust for Durian Is Creating Fortunes in Southeast Asia
Before he started a company 15 years ago selling the world’s smelliest fruit, Eric Chan had a well-paying job writing code for satellites and robots. His family and friends were puzzled when he made the career change. The fruit, durian, has long been a cherished part of local cultures in Southeast Asia, where it is […]
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Fed Is in No Rush to Cut Rates as Economy Holds Up
Federal Reserve officials are entering an uncertain summer. They are not sure how quickly inflation will cool, how much the economy is likely to slow or just how long interest rates need to stay high in order to make sure that quick price increases are fully vanquished. What they do know is that, for now, […]
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What Retail Apocalypse? Shopping Centers Are Making a Comeback.
Shopping center landlords have found themselves in a wholly unfamiliar position: For the first time in 20 years, demand for retail space outstrips supply. That demand has soared recently and, after years of muted construction and a purge of weak-performing properties, met a retail market with less available space. Properties that survived the purge signed […]
Read MorePrice Pendulum Swings Back to Discounts, Within Limits
U.S. consumers, fatigued by a three-year bout of inflation, want lower prices. And large retailers that have increased prices, partly to contend with their own rising costs, appear to be responding to customer concerns — to an extent. Walgreens said last week that it was lowering prices on over 1,000 items. Target recently announced modest […]
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Why Are People So Down About the Economy? Theories Abound.
The U.S. economy has been an enigma over the past few years. The job market is booming, and consumers are still spending, which is usually a sign of optimism. But if you ask Americans, many will tell you that they feel bad about the economy and are unhappy about President Biden’s economic record. Call it […]
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GDP Gain in First Quarter Revised Downward in U.S.
Economic growth slowed more sharply early this year than initially estimated, as consumers eased up on spending amid rising prices and high interest rates. U.S. gross domestic product, adjusted for inflation, grew at a 1.3 percent annual rate in the first three months of the year, the Commerce Department said on Thursday. That was down […]
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What the Downfall of Red Lobster Tells Us About America
The great economist George Stigler wrote a paper called “The Cost of Subsistence” that calculated the minimum cost of food that would satisfy the nutritional requirements of “an active economist” who “lives in a large city.” He calculated the nutritional value of 77 foods, including yummy ones like chocolate, strawberry preserves, bananas and leg of […]
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Biden’s China Tariffs Are the End of an Era for Cheap Chinese Goods
For the first two decades of the 21st century, many consumer products on America’s store shelves got less expensive. A wave of imports from China and other emerging economies helped push down the cost of video games, T-shirts, dining tables, home appliances and more. Those imports drove some American factories out of business, and they […]
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China Is Buying Gold, Sending Prices to Record Highs
As gold surged this year to its highest price ever, Xena Lin joined the frenzy by making monthly purchases of gold “beans,” pebble-like morsels of the precious metal. For Ms. Lin, a 25-year-old administrative worker in southern China, the $80 beans — small enough to rest on a fingertip and weighing about one-thirtieth of an […]
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With Inflation This High, Nobody Knows What a Dollar Is Worth
Rising prices have made people grumpy. They have depressed consumer confidence, despite a growing economy and low unemployment. But exactly how inflation is hurting, helping and confusing people is hard to understand. Everyone knows that the cost of living has increased. Yet unless you’re constantly pulling out a calculator, you’re unlikely to know whether your […]
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U.S. Economy Grew at 1.6% Rate in First Quarter Slowdown
The U.S. economy continued to grow but at a sharply slower rate early this year, as strong consumer spending was offset by weakness in other sectors. Gross domestic product, adjusted for inflation, increased at a 1.6 percent annual rate in the first three months of 2024, down from 3.4 percent at the end of 2023, […]
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Why Better Times (and Big Raises) Haven’t Cured the Inflation Hangover
In western Pennsylvania, halfway through one of those classic hazy March days when the worst of winter has passed, but the bare trees tilting in the wind tell everyone spring is yet to come, Darren Mattern was putting in some extra work. Tucked at a corner table inside a Barnes & Noble cafe in Logan […]
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Consumers Hate ‘Price Discrimination,’ but They Sure Love a Discount
It’s been a strange and maddening couple of years for consumers, with prices of essential goods soaring and then sinking, turning household budgets upside down. Perhaps that’s why, in late February, the internet revolted over Wendy’s plan to test changing its menu prices across the day. If the Breakfast Baconator winds up costing $6.99 at […]
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Has the Luxury E-Commerce Bubble Burst?
Rosh Mahtani, the founder of the jewelry brand Alighieri, is celebrating the 10th anniversary of her company this year. Her handmade gold-plated pieces, inspired by Dante’s “Divine Comedy,” made her a winner of the Queen Elizabeth II Award for British Design and a mainstay of luxury e-commerce vendors. During Paris Fashion Week last month, buyers […]
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