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Time of India
13-06-2025
- Business
- Time of India
US consumer sentiment jumps for first time in 2025, says UMich report; tariff pause and steady prices lift confidence
US consumer sentiment improved in June for the first time in six months, according to preliminary data released Friday by the University of Michigan, offering signs of economic stabilization as inflation remains subdued and trade tensions with China temporarily ease. The university's closely watched Consumer Sentiment Index jumped to 60.5 in June from 52.2 in May — a 16% rise that marks the sharpest increase in a year. The rebound follows five consecutive monthly declines and lifts the index from its second-lowest level in the survey's nearly 75-year history. Despite the uptick, sentiment remains down 20% compared with December 2024. "Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed,' said Joanne Hsu, director of the survey, AP reported. 'However, consumers still perceive wide-ranging downside risks to the economy.' The improvement comes after President Donald Trump postponed a sweeping round of tariffs on imports from roughly 60 countries in April and subsequently reached a truce with China last month. While tariffs remain elevated by historical standards, the White House has signaled a willingness to pause escalation pending further talks. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like CVS Is Silent About This 87¢ ED Med – Here's the Truth Health Alliance by Friday Plans Undo The Conference Board's Consumer Confidence Index — a separate metric released late last month — also showed improvement after five straight monthly declines, with analysts attributing the shift to easing fears over inflation and trade policy unpredictability. Official inflation data released earlier this week showed consumer prices rising 2.4% year-on-year in May, up slightly from 2.3% in April. While tariffs are expected to put further pressure on prices in the second half of the year, inflation remains close to the Federal Reserve's 2% target for now. Sentiment remains sharply divided along political lines. Republicans, who broadly support Trump's economic policies, continue to express stronger confidence than Democrats, whose views had been more optimistic under the Biden administration. However, sentiment improved across party lines in June, including among independents. Inflation expectations among consumers also declined in June — a development likely to be welcomed by the Federal Reserve ahead of its policy meeting next week. Economists view such expectations as a key variable in inflation dynamics, as fears of rising prices can influence wage demands and spending behavior. The Fed is widely expected to leave its benchmark short-term interest rate unchanged at approximately 4.3% when it meets next week, as policymakers monitor the evolving impact of trade policy and inflationary risks on the broader economy. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
13-06-2025
- Business
- Time of India
US consumer sentiment improves in June
U.S. consumer sentiment improved for the first time in six months in June, but that could be temporary after Israel launched missile strikes against Iran, boosting oil prices . The University of Michigan Surveys of Consumers on Friday said its Consumer Sentiment Index jumped to 60.5 this month from a final reading of 52.2 in May. Economists polled by Reuters had forecast the index rising to 53.5. "Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed," said Surveys of Consumers Director Joanne Hsu. "However, consumers still perceive wide-ranging downside risks to the economy." Consumers' 12-month inflation expectations fell to 5.1% from 6.6% in May. Long-run inflation expectations dipped to 4.1% from 4.2% last month. Oil prices surged more than $5 per barrel on Friday to multi-year highs as the Israeli strikes on Iranian nuclear facilities stoked fears of retaliation and disruption of crude supplies from Middle East. Live Events
Yahoo
13-06-2025
- Business
- Yahoo
US consumer sentiment improves in June
WASHINGTON (Reuters) -U.S. consumer sentiment improved for the first time in six months in June, but that could be temporary after Israel launched missile strikes against Iran, boosting oil prices. The University of Michigan Surveys of Consumers on Friday said its Consumer Sentiment Index jumped to 60.5 this month from a final reading of 52.2 in May. Economists polled by Reuters had forecast the index rising to 53.5. "Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed," said Surveys of Consumers Director Joanne Hsu. "However, consumers still perceive wide-ranging downside risks to the economy." Consumers' 12-month inflation expectations fell to 5.1% from 6.6% in May. Long-run inflation expectations dipped to 4.1% from 4.2% last month. Oil prices surged more than $5 per barrel on Friday to multi-year highs as the Israeli strikes on Iranian nuclear facilities stoked fears of retaliation and disruption of crude supplies from Middle East. (Reporting By Lucia Mutikani; Editing by Chizu Nomiyama) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
US consumer sentiment improves in June
WASHINGTON (Reuters) -U.S. consumer sentiment improved for the first time in six months in June, but that could be temporary after Israel launched missile strikes against Iran, boosting oil prices. The University of Michigan Surveys of Consumers on Friday said its Consumer Sentiment Index jumped to 60.5 this month from a final reading of 52.2 in May. Economists polled by Reuters had forecast the index rising to 53.5. "Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed," said Surveys of Consumers Director Joanne Hsu. "However, consumers still perceive wide-ranging downside risks to the economy." Consumers' 12-month inflation expectations fell to 5.1% from 6.6% in May. Long-run inflation expectations dipped to 4.1% from 4.2% last month. Oil prices surged more than $5 per barrel on Friday to multi-year highs as the Israeli strikes on Iranian nuclear facilities stoked fears of retaliation and disruption of crude supplies from Middle East. (Reporting By Lucia Mutikani; Editing by Chizu Nomiyama) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-06-2025
- Business
- Yahoo
TAP Q1 Earnings Call: Molson Coors Addresses Macroeconomic Pressures and Strategic Adjustments
Beer company Molson Coors (NYSE:TAP) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 11.3% year on year to $2.3 billion. Its non-GAAP EPS of $0.50 per share was 37.2% below analysts' consensus estimates. Is now the time to buy TAP? Find out in our full research report (it's free). Revenue: $2.3 billion (11.3% year-on-year decline) Adjusted EPS: $0.50 vs analyst expectations of $0.80 (37.2% miss) Operating Margin: 8.1%, down from 12.1% in the same quarter last year Sales Volumes fell 15.6% year on year (5.7% in the same quarter last year) Market Capitalization: $10.68 billion Molson Coors' latest quarter was defined by pronounced declines in sales volumes and operating margins amid a challenging macroeconomic environment. Management attributed the year-on-year drop in financial results to softer consumer demand, ongoing macro volatility, and expected headwinds such as the end of contract brewing agreements and one-time integration costs related to the Fever-Tree partnership. CEO Gavin Hattersley highlighted that the U.S. beer market, in particular, faced larger-than-anticipated declines in consumer confidence, which weighed heavily on consumption trends. While operational disruptions like last year's Fort Worth brewery strike and changes in shipment timing also played a role, Hattersley emphasized, "The magnitude of the impacts of the macroeconomic environment and industry has been much greater so far this year than we had expected." Looking ahead, Molson Coors is adjusting its strategy to navigate ongoing uncertainty in consumer demand and external pressures. Management now expects a low single-digit decline in revenue for the year and is taking steps to reduce capital expenditures and discretionary costs. CFO Tracey Joubert explained that the company's updated outlook is shaped by industry softness and continued macro challenges but is supported by ongoing premiumization initiatives, new product launches, and incremental contributions from partnerships like Fever-Tree and ZOA. Hattersley noted, "These are uncertain times, but we believe we have the right strategy and a healthy balance sheet and strong cash generation to continue to execute it, while continuing to return cash to shareholders." Management cited macroeconomic headwinds, planned operational changes, and a focus on premiumization as primary factors influencing the quarter's results and near-term outlook. Macroeconomic pressures dominate: Management repeatedly referenced the impact of volatile consumer confidence and global economic uncertainty, which led to weaker-than-expected demand across key markets. Hattersley noted that the U.S. beer market experienced a larger decline than anticipated, with the University of Michigan Consumer Sentiment Index dropping sharply during the period. Contract brewing exits weigh on volume: The conclusion of contract brewing agreements with Pabst in the U.S. and Labatt in Canada resulted in a temporary volume headwind that pressured reported sales, though management expects mix and margin benefits in subsequent quarters as the portfolio shifts away from lower-margin contract production. Premiumization and brand investment: Molson Coors continued investing in its core "power brands" (Coors Light, Miller Lite, Coors Banquet) and highlighted growth in above-premium offerings, including the expansion of Peroni and the Blue Moon non-alcoholic line. The company stressed ongoing efforts to capture value from premiumization, aiming for more favorable brand and product mix. Fever-Tree integration and non-alcoholic expansion: The company's recent acquisition of U.S. rights to Fever-Tree and increased stake in ZOA energy drinks were described as strategic moves to expand the non-alcoholic business. Fever-Tree's addition was called 'immediately incremental' to Molson Coors' U.S. business, with management citing significant distribution upside. Disciplined cost management: Facing lower volumes and profitability, management prioritized cost savings by curtailing non-critical discretionary spending and reducing planned capital expenditures by $100 million, postponing projects not directly tied to cost savings or critical growth initiatives. Molson Coors' outlook for the coming quarters centers on cautious revenue expectations, a continued push for premiumization, and disciplined capital allocation in a volatile environment. Consumer demand uncertainty: Management expects near-term demand to remain pressured by macroeconomic factors but is not forecasting the steep declines seen in Q1 to persist throughout the year. Hattersley indicated that improvement is anticipated in the back half of the year, provided economic conditions stabilize. Premiumization and innovation focus: The company is prioritizing further premiumization of its portfolio in North America, EMEA, and APAC, with special attention on the rollout of Peroni, Blue Moon innovations, and the continued momentum of non-alcoholic offerings. Management views these initiatives as vital for margin recovery and long-term growth. Cost control and capital discipline: Molson Coors is tightening control over discretionary expenses and reducing capital expenditures, focusing investment on projects linked to productivity, cost savings, and critical brand support. The company reiterated its commitment to maintaining healthy free cash flow and returning capital to shareholders. In the coming quarters, our analysts will monitor (1) volume trends and consumer demand stabilization in North America and Europe; (2) the pace and effectiveness of premiumization strategies, especially for brands like Peroni, Blue Moon, and Fever-Tree; and (3) the execution of cost control measures and capital allocation discipline. Leadership transition progress and the impact of new product launches will also be key areas to watch. Molson Coors currently trades at a forward P/E ratio of 8.2×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
