At the end of the day, the consumer is the owner of the progress of savings, which indirectly means the progress of companies as well as the currency of the country. Hence, one of the most important economic variables is consumer confidence, because this is where the doors to greater or lesser consumption are opened. This confidence derives from several factors, the main one being the health of the labour market, which reinforces the importance of the data from the non-farm payrolls that come out every month and which are generally considered the most important, except for one or another more specific occasion. In fact, the importance that Jerome Powell has given to the pace of job recovery is notorious, not least because the disruption caused by the COVID pandemic has altered the dynamics that the labour market has the formation of inflation figures, namely because new technologies have accelerated the digitization of procedures in companies, requiring less human resources.
Two of the most important details on this topic are consumer spending and disposable income, which basically allows for future spending and it is curious to see that the common sense of families prevails almost always in times of crisis, increasing savings levels, preparing up for difficult times. That is what American citizens who took advantage of the proceeds of the Cares Act, namely the $600 weekly, to create an additional savings cushion. Source of capital that they have used recently to support their needs after the end of that support, as demonstrated by the $541 billion less disposable income that households had at the end of August, since monthly checks ended at the end of July, which makes clear the need for more support to keep consumption to a minimum, and it is now extremely important to understand how consumer spending was in September, after the $141 billion increase in the previous month, as reserves are practically depleted and there is no light at the end of the tunnel in Congress for a new stimulus package.
