By Craig James
By Craig James
101Econ by Craig James
From time to time I will look to pen some different perspectives on the economy. Not every week - I'm retired after all!
They all will have the same focus... answering the 'So What?' question - what does this mean for me? What does it mean for my business? What does it mean for my investments? What does it mean for the economy?
Car buyers are still active - new car sales were at record highs in 2024. But car makers are still dragging their feet. Delivery wait times are still long and many prospective buyers are being forced (or prefer) to buy older models, forcing up prices.
Future rate cuts will rely on narrowing the supply/demand gap..and Trump
The supply/demand gap still exists. And further progress in narrowing the gap will be necessary to get inflation down and cut rates further.
We are good at focusing on spending - or demand - in the economy. Now is the time to focus on business indicators - production, productivity, turnover.
Trump is the wildcard. If he relents from his break through or break strategy on trade and focuses on proposed rate cuts then the economic scene will become more positive.
But no one likes uncertainty. So central banks will stay on the sidelines, hoping for more settled conditions to determine next moves on rates.
Views expressed are my own.
Everything discussed iis general in nature and does not take your personal situation into account.
This is not financial advice nor is it a recommendation or statement of opinion intended to influence
you into making a decision in respect of your financial situation.
You should consider seeking independent financial taxation, taxation or legal advice specific to your situation.
Economics is always interesting. It's just economists that make it boring!
Some may do crosswords. Some do Suduko. I love delving into the economic stats! An economic nerd.
I'll try and present some different perspectives. But I'm interested in your views. Do the perspectives make sense? Are they relevant or useful? And can the work be extended in other ways.
At the end of the day, we are all interested in what it means for us, our businesses and our investments
We will see what evolves...
Do you have ideas that you think coould be explored? Let's chat.
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