Oil prices continue to rise; US government averts shutdown

Oil prices continue to rise; US government averts shutdown

KUWAIT: Consumer confidence in the United States fell again in September, with the Conference Board index coming in at 103.00 from 108.7 previously. The drop in consumer sentiment comes amid elevated energy prices as well as a crisis regarding governmental funding that was averted in the last second with a stopgap bill. Within the index, present situation actually improved despite higher energy costs coming in at 147.1 from 146.7 previously.

However, there was a noticeable drop in the consumer expectations portion, which declined to 73.7 from 83.3, indicating the level of worry regarding the near-term future. Gross Domestic Product in the United States grew at an annual rate of 2.1 percent in the second quarter meeting market expectations. Despite the final figure remaining the same, consumer spending was revised downwards while non-resident fixed investments, exports, and inventory investment were revised higher.

Unemployment claims in the United States rose to 204,000 from 202,000 previously but came in better than expected and remains resilient against high interest rates. Last week’s print was the lowest since January while current numbers also indicate that the labor market remains historically tight. The Fed have continuously lamented that the labor market was contributing to upwards pressure in inflation,