#economic-uncertainty

#economic-uncertainty

U.S. home sales in May fell by 11% year-over-year, marking the largest annual decrease in a year, as economic uncertainty persists and mortgage rates remain elevated.

"I'm basically starting over - that's the part that bothers me," said Francis, who's in her 50s and based in the Northeast US. "But I have to do what I have to do to survive."

The Wall Street Journal Editorial Board has warned that the recent 15% tariff agreement with Japan could carry long-term strategic costs in the form of rising prices and mounting pressure on consumer and business sentiment.

LVMH's fashion and leather goods sales dropped 9 percent in Q2, deepening from a previous 5 percent decline, highlighting weaknesses reflected in organic sales.

Christian Klein noted that in a few individual industries affected by uncertainty, extended approval workflows are evident, particularly in the US public sector and among manufacturers impacted by tariffs.

A recent Bank of America Institute note spotted a contradiction: While data shows customers increasing spending at restaurants recently, when surveyed, shoppers said they actually cut spending on dining out. They explain this by deal-hunting: Diners still went out, but scaled down the types of restaurants they visited to get more bang for their buck.

Frasers Group anticipates adjusted pre-tax profits between £550 million and £600 million for the new financial year, reflecting little to no profit growth due to economic uncertainty and potential tax rises.

Shares of ASML, the Dutch semiconductor equipment giant, tumbled 11% on Wednesday after the company announced it could no longer confirm that it will grow in 2026.

"Higher education has not faced this level of financial uncertainty in generations," said Robert Kelchen, chair of educational leadership and policy studies at the University of Tennessee at Knoxville, who reviewed preliminary survey data. Recent history offers one comparison—the early days of the pandemic, when uncertainty was similarly 'off the charts.' However, back then, the federal government 'quickly stepped in to provide support.' Today, by contrast, the federal government 'is causing the uncertainty.'

"What we are witnessing here might highlight US PC demand slowing down in anticipation of the import tariffs looming deadline."

WPP's unexpected profit warning sent shares down as much as 18%, with rival ad groups like Omnicom, Publicis, IPG, and Havas also experiencing declines.

"A report from Indeed indicates that the job market for recent graduates is at its toughest since 2018, with a 33% decline in job advertisements compared to last year."

In times of uncertainty, while many leaders might consider subtractive tactics such as cost-cutting and streamlining, a more strategic approach is essential for sustained growth.

"It's often that the bar is higher."

Super Micro Computer Inc., despite being a target for short sellers, is considered to have significant growth potential driven by the explosive demand in the IT services industry.

UK households are increasingly setting aside physical cash amid extreme economic uncertainty and to provide a safety net for possible banking system outages.

The luxury sector is facing uncertainty with a decline in China’s consumption, exacerbated by economic issues like inflation and rising prices, affecting global brands.

"This summer is expected to see record numbers of visitors in national parks despite reduced services and long lines due to significant federal budget cuts, signaling a high demand for nature escapes."

"In an era where the outlook on the jobs market is fuzzy or uncertain, it makes sense for both employers and employees to stick with what they know," Nela Richardson, ADP's chief economist, said.

The company had already paused its highly anticipated IPO in the US last month, which once valued it at over $15 billion.

TikTok Shop employees are bracing for layoffs after the company said it's making personnel changes.

We've always known this journey would be demanding. Today, we find ourselves navigating a challenging time that necessitates adjustments as we strive for success.

Decisions, decisions. These days, the only certainty is more uncertainty. That's a problem for anyone making big financial decisions.

If you're worried about a recession, then one of the best things you can do is boost your emergency fund to ensure financial stability.