Daily Brief – US Consumer Spending

US Consumer Spending

Inflation may be a concern, consumer sentiment may be low, the US labour market may be slowing but in the past four months the US consumer has been out and proud: spending. While consumer spending fell on an inflation adjusted basis for H1 2025, taking the period from may to end August consumer spending has been on a tear with Americans rushing out to replace appliances and other durable goods. While there may be an element of canny consumers seeing economic clouds looming or maybe shucking in to buy non American durables ahead of Trump tariffs, the fact remains that US consumers have shrugged off their concerns and gone shopping.

EUR/USD 1.1686.

World’s Most Expensive Cities 

The index based on NYC which is already a high cost of living city at 100 is instructive as New York comes in at Number 8. The top 6 are all Swiss and average 15% more expensive than NYC. Numbers 15-18 London, Washington, Trondheim and Boston are conversely an average of 15% less expensive than NYC.

USD/JPY 147.06.

Workplace

Now that the WFH phenomenon has been largely consigned to the scrap heap in the commercial world but not so much in the governmental sector, you may recognize the following characters among your workplace colleagues: Wheelbarrow? Seaweed? Kitkat? Cordless? E.T.? Play the parlour game of guessing what they signify but look away now if you don’t want the answers. Wheelbarrow: needs pushing to get any work done; Seaweed: just floats around; Kitkat: always taking a break; Cordless: only works for 2 hours at a time; E.T: always wants to go home.

GBP/USD 1.3505.

Canary Wharf

Much more positivity around the now forty something Canary Wharf Financial’s district that following Covid and WFH had a wobble but, with HSBC reversing their decision to quit the area and Santander taking a huge amount of space among other deals, the district is on an upswing. A planning implication for the Canary Wharf Lido due to be submitted to LB Tower Hamlets this month if approved will see a floating 6 lane Olympic sized pool, clubhouse, saunas and restaurants in the Eden Dock which is right next to Canary Wharf tube station.

EUR/GBP 0.8655.

Rush of Blood to the Head

This was Coldplay’s second chart topping album released this day in 2002 which went on to win a Grammy Award in 2003. A clutch of hits made the album a best seller and none was bigger than this one, Clocks.

The lights go out and I can’t be saved
Tides that I tried to swim against
Have brought me down upon my knees
Oh, I beg, I beg and plead
Singin’ come out of things un said
Shoot an apple off my head
And a trouble that can’t be named
A tiger’s waiting to be tamed, singin’
You are
You are
Confusion that never stops
Closing walls and ticking clocks
Gonna come back and take you home
I could not stop that you now know
Singin’ come out upon my seas
Cursed missed opportunities
Am I a part of the cure
Or am I part of the disease? Singin’
You are
You are

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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