Author: Jamie Carpenter

US consumer spending surged by 0.7% in March, marking the biggest monthly gain in over two years, driven by concerns over President Donald Trump’s tariffs and rising inflation, according to the latest report from the Commerce Department. Strong March Consumer Spending Consumer spending for March saw a sharp rise, increasing by 0.7% from February, bolstered by a surge in durable goods, particularly automobiles. This marked the highest growth in consumer spending since 2021, with retail and durable goods showing robust gains. Americans’ rush to make purchases ahead of the expected price hikes due to tariffs has played a pivotal role…

While many retailers are bracing for profits to take a hit due to the impact of tariffs, Oddity Tech is defying the trend, raising its outlook after another quarter of strong growth. The beauty and tech retailer, known for brands like Il Makiage and Spoiled Child, has hiked both its earnings and profit guidance for fiscal 2025. In a stark contrast to other companies, Oddity has no immediate plans to raise prices due to the effect of new levies. Mitigating Initiatives and Optimistic Outlook Despite the uncertainty around tariffs, Oddity remains confident in its ability to navigate these challenges. Finance…

As the year begins, the U.S. economy is witnessing a tale of two consumers. On one hand, lower-income earners are tightening their spending, focusing primarily on essentials. On the other hand, wealthier consumers are continuing to spend freely, indulging in dining out, luxury travel, and other perks. This divide has become increasingly evident, especially in the first-quarter results from major U.S. credit card lenders. Disparity in Spending Habits The effects of President Donald Trump’s trade policies have rippled through the economy, raising concerns about the potential impact on consumer sentiment. While overall spending remains strong, signs of stress are beginning…

Core inflation in Tokyo accelerated to a two-year high in April, driven by soaring food costs, complicating the Bank of Japan’s (BOJ) efforts to navigate its ultra-loose monetary policy. The rise in inflation highlights the delicate balance the BOJ faces in managing economic risks, particularly from the ongoing U.S. tariff situation and rising domestic prices. Inflation Hits Two-Year High The Tokyo Consumer Price Index (CPI), excluding volatile fresh food prices, rose 3.4% in April compared to a year earlier, marking the highest level since April 2023. This was above the median market forecast of 3.2%, following a 2.4% increase in…

Chipotle’s (CMG) disappointing first-quarter results may have investors holding their breath, but analysts suggest the future still holds potential for growth. Bernstein analyst Danilo Gargiulo, in a note titled “Chipotle… Not for the faint-hearted,” reassured stakeholders that the fundamentals of the business remain intact, with the brand likely to emerge stronger after weathering the current challenges. Declining Sales and Foot Traffic Despite the company’s long-term success, Chipotle’s same-store sales growth hit its worst performance since 2020, with a noticeable decline in foot traffic for the first time since 2022. Gargiulo noted that even with the brand’s scale, it couldn’t escape…

The International Monetary Fund (IMF) has significantly downgraded Canada’s economic growth forecast for the next two years, citing the impact of U.S. tariffs. The IMF now projects Canada’s GDP growth at 1.4% in 2025 and 1.6% in 2026, down by 0.6 percentage points and 0.4 percentage points, respectively. This represents a notable setback for Canada’s economic outlook, primarily due to tariffs on Canadian exports imposed by the U.S. Tariffs and Global Trade Uncertainty The IMF blames the downward revision on new U.S. tariffs, which took effect in March, as well as increased uncertainty in global trade. The tariffs have created…

As the Trump administration’s 25% tariffs on the automotive sector drive up car prices, many customers are rethinking their decisions to replace their aging vehicles. A new report from Reuters highlights that the economic fallout from these tariffs could result in 1.8 million fewer car sales annually in both the U.S. and Canada this year. Impact of Tariffs on U.S. and Canadian Car Sales The data, sourced from a forecast by Detroit-area automotive advisory firm Telemetry, predicts a long-term downturn in car sales if the tariffs remain in place. According to Telemetry’s forecast, if the 25% tariffs continue until 2035,…

Instagram is stepping up its efforts to ensure that its younger users are accurately representing their ages on the platform, using artificial intelligence (AI) to verify the ages of users who may have lied about their birthdates. This move, announced by parent company Meta Platforms on Monday, comes amid growing concerns about social media’s impact on teen users’ mental health and well-being. AI to Detect Misrepresentation of Age Meta has been using AI for some time to estimate user ages, but Instagram is now testing a more proactive approach. The company plans to use AI to flag accounts that may…

Japan’s export growth slowed in March, rising by 3.9% compared to the same month last year, missing expectations of a 4.5% increase. This follows a significant rise of 11.4% in February, showing a slowdown in the pace of expansion. Despite this, exports to certain regions, such as the Middle East, saw impressive growth, underscoring Japan’s evolving trade landscape. March Export Performance: Middle East Leads, U.S. Sees Moderate Growth The highest growth in March exports came from the Middle East, with a notable 17.1% increase. Exports to the U.S., Japan’s second-largest trading partner, rose by 3.1%. This performance indicates the continued…

The U.S. labor market remains resilient, but the effects of President Donald Trump’s tariffs are starting to show their strain. While the number of unemployment claims fell to a two-month low in mid-April, businesses continue to tread carefully, uncertain about the future impact of the trade war. The chaotic nature of Trump’s trade policies, with frequent shifts and new duties, has added an extra layer of unpredictability, especially for small businesses. In the midst of this, the housing market also faces mounting pressures, with building activity slowing down due to higher costs on materials and uncertainty about the economy’s future.…