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US consumer confidence dips in November: survey

| By AFP |

US consumers were gloomier about the state of the American economy in November, likely due to a rise in gas prices and as recession risks loom, according to a survey released Tuesday.

The closely-watched consumer confidence index dipped to 100.2 in November, down two points from the month before, in a second straight month of decline, said think tank The Conference Board.

“Consumers’ expectations regarding the short-term outlook remained gloomy,” said Lynn Franco, senior director of economic indicators at The Conference Board.

The drop in consumer confidence this month, in line with analyst expectations, was “most likely prompted by the recent rise in gas prices,” she said. 

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Data on consumers’ short-term outlook suggests the likelihood of a recession remains elevated as well.

“Inflation expectations increased to their highest level since July, with both gas and food prices as the main culprits,” Franco said.

Consumer inflation in the United States has been hovering at the highest level in decades, prompting the Federal Reserve to take aggressive steps to raise interest rates and cool the economy.

The central bank walks a tightrope trying to bring down surging costs while avoiding tipping the world’s biggest economy into a downturn.

For now, consumer intentions to buy homes, automobiles and big-ticket appliances have moderated.

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“The combination of inflation and interest rate hikes will continue to pose challenges to confidence and economic growth into early 2023,” Franco said.

But with inflation showing signs of easing and central bankers noting it would take time for policy effects to be realized, a growing number of voices including Fed officials have advocated for smaller steps in the coming months.

The consumer sentiment reading “remains depressed compared to pre-pandemic” levels, said economist Rubeela Farooqi of High Frequency Economics.

Overall, measures of sentiment “are sending a negative signal about household spending,” even if consumption continues to support growth for now, she added.

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International

Floods in Central Vietnam leave 28 dead, thousands displaced

The death toll from heavy rains and flooding in central Vietnam has risen to 28, with six people reported missing and 43 injured, local newspaper VnExpress reported Friday night.

More than 22,100 homes remain flooded, primarily in the cities of Hue and Da Nang. Floods and landslides have destroyed or swept away 91 houses and damaged another 181, the report added.

Around 245,000 households are still without electricity, particularly in Da Nang, where over 225,000 homes are affected.

Additionally, 80 stretches of national highways are blocked or disrupted due to landslides. Authorities expect the flooding to continue for another day or two in the region.

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International

FBI foils ISIS-Inspired attack in Michigan, arrests five teens

Kash Patel did not provide further details, but police sources told CBS News that the potential attack was “inspired” by the Islamic State (ISIS).

“This morning, the FBI thwarted a potential terrorist attack and arrested several individuals in Michigan who were allegedly planning a violent attack during the Halloween weekend,” Patel wrote on X.

“Thanks to swift action and close coordination with our local partners, a possible terrorist act was prevented before it could be carried out,” he added.

CBS reported that five people between the ages of 16 and 20 were arrested on Friday. At least one of them was reportedly acquainted with a former member of the Michigan National Guard, who was arrested in May for plotting an ISIS-inspired attack on a U.S. military facility in the Detroit suburbs.

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International

U.S. warns China over Taiwan during high-level defense talks in Kuala Lumpur

U.S. Secretary of Defense Pete Hegseth expressed concerns over China’s growing military activity near Taiwan during a meeting on Friday with Chinese Defense Minister Dong Jun in Kuala Lumpur.

“It was a constructive and positive meeting,” Hegseth wrote on X. “I emphasized the importance of maintaining a balance of power in the Indo-Pacific and raised U.S. concerns about China’s actions around Taiwan,” the self-governed island that Beijing claims and does not rule out invading.

The meeting took place on the sidelines of the ASEAN Defense Ministers Meeting-Plus, one day after U.S. President Donald Trump met Chinese President Xi Jinping in Busan, South Korea. According to Trump, Taiwan was not discussed during their talks.

“The United States does not seek conflict and will continue to firmly defend its interests, ensuring it maintains the capability to do so in the region,” Hegseth added in his message.

Friday’s encounter followed a September 9 video call between Hegseth and Dong. Their previously planned meeting at the Shangri-La Dialogue in Singapore was canceled due to Dong’s absence from the event.

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Trump’s sit-down with Xi — their first since 2019 — resulted in some trade agreements but avoided addressing the issue of Taiwan, a long-standing source of tension between the world’s two largest powers.

Trump has taken a more ambiguous stance on Taiwan’s future compared with former President Joe Biden, who repeatedly stated that Washington would support Taipei if China launched an invasion. The Republican president has also criticized Taiwan for “stealing” the U.S. semiconductor industry.

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