Bloomberg Surveillance Single Best Idea with Tom Keene: Ellen Zentner & Anna Wong
Feb 7, 2025
Discover how the post-COVID economy is reshaping consumer spending habits, with insights into wealth accumulation and its future implications. Explore positive trends in the labor market, highlighted by unexpected data from the Bureau of Labor Statistics. Unpack demographic shifts and their effects on business strategies, offering a fresh perspective on management resources and market opportunities. This compelling discussion brings clarity to current economic developments and the forces driving them.
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Wealth Effect and Spending
- The stock market's rise has created significant wealth, impacting consumer spending.
- Economists debate if spending is higher due to increased wealth or lingering COVID effects.
MPC Normalizing
- The marginal propensity to consume (MPC) is returning to normal.
- However, the sheer amount of wealth created is driving higher spending levels.
Job Growth and Revisions
- The Bureau of Labor Statistics (BLS) reported fewer downward revisions than expected.
- Job growth improved towards the end of 2024, particularly in December.