Good evening, I’m reporting for CNN Business on today’s top stories. Americans may be less inclined to spend big this summer, with the 2024 KPMG Consumer Pulse Survey revealing that consumers plan to cut back on away-from-home entertainment and vacations. Compared to last year’s spending spree on concerts and getaways, Americans expect to reduce their monthly spending on dining out by 9%, entertainment and media by 8%, and travel and vacations by 7%. This change in consumer behavior is also impacting sales of personal care products, with just 21% of consumers planning to spend more, down from 32% last year.
Concerns over inflation and high borrowing rates are contributing to this shift in spending habits. While some companies have raised prices to account for inflation, others have reduced product sizes while keeping prices the same. The impact of these changes is evident in the slight increase in retail sales in May, which rose just 0.1% from the previous month.
The cooling consumer spending could prompt the Federal Reserve to cut interest rates sooner rather than later, as long as inflation inches closer to the bank’s 2% goal. However, a sharp decline in spending could indicate potential recession territory for the broader economy. Customers are also looking for quality products that offer value for their money, benefiting retailers like Ross Stores, Dollar General, and Walmart.
On the global stage, a record number of millionaires are expected to leave the United Kingdom this year, amid political turmoil and concerns over potential tax increases under a future Labour government. The mass migration of the rich is part of a broader trend, with 128,000 millionaires set to relocate this year, surpassing last year’s record by 8,000.
In the tech industry, Nvidia has taken the crown as the most valuable company in the world, surpassing Microsoft with a market cap of $3.34 trillion. Nvidia’s success can be attributed to its cutting-edge chips that power artificial intelligence systems, making it a leader in the industry.
That’s all for today’s top stories. Stay tuned for more updates on CNN Business.
