Morning Market Brief: November 29, 2023

US consumers more optimistic about the economic outlook?

US consumer confidence increased in November, marking its first increase in four months. While concerns about current economic conditions persist, consumers appear more optimistic about the long-term health of the US economy. A strong labour market and expectations of looser financial conditions ahead have boosted confidence.?

1. The Conference Board Consumer Confidence Index rose to 102.0 in November from 99.1 in the previous month. A Bloomberg survey of economists estimated a 101.0 reading.
2. US consumers’ perception of current economic conditions weakened in November. Economic uncertainty is weighing on consumers, particularly as the threat of a recession looms over the economy.
3. A strong labour market is keeping hopes high for the outlook of the US economy. Slowing inflation should ease pressure on consumers, while signals point to the US Federal Reserve Board being close to ending its interest-rate hiking cycle.
4. Spending might remain relatively robust among US consumers. In November, compared to the previous month, more consumers expressed intentions to make a major purchase, such as a car or major appliance. A more bullish consumer might translate into higher spending.

There is much uncertainty in current economic conditions both in the US and Canada, weighing on households and businesses. However, the long-term health of both economies appears robust. Economic conditions go through cycles just like financial markets. Monitor financial markets and prepare to pounce when securities are trading at attractive prices. Having exposure to defensive sectors might protect your portfolio under challenged conditions, while cyclical stocks could help as economic conditions improve.

At?CIBC Private Wealth, we aim to take a comprehensive approach to managing, building and protecting your wealth. If you'd like to discuss this market and economic update in more detail, please get in touch with your advisor any time.

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