Harriet Torry

How significant are consumers' expectations to the economy?

How significant are consumers' expectations to the economy?

Well, consumer spending is what drives the US economy. But having said that, consumer sentiment doesn't always translate into consumer spending. So for instance, in 2022, we saw a very, very sharp drop in consumer sentiment. People were extremely worried about the economy and very depressed about inflation. But at the same time, they carried on spending.

Well, consumer spending is what drives the US economy. But having said that, consumer sentiment doesn't always translate into consumer spending. So for instance, in 2022, we saw a very, very sharp drop in consumer sentiment. People were extremely worried about the economy and very depressed about inflation. But at the same time, they carried on spending.

And as we saw in the survey, there is a big split along partisan lines. So in April, we saw sentiment drop among Democrats to its lowest on record, whereas among Republicans, it picked up slightly.

And as we saw in the survey, there is a big split along partisan lines. So in April, we saw sentiment drop among Democrats to its lowest on record, whereas among Republicans, it picked up slightly.

and expectations for the future they dropped across all parties so everyone is feeling a little worried about the future but republicans are feeling pretty good about the current situation and democrats on the other hand are feeling very negative about both the current situation and the future

and expectations for the future they dropped across all parties so everyone is feeling a little worried about the future but republicans are feeling pretty good about the current situation and democrats on the other hand are feeling very negative about both the current situation and the future

Harriet Torrey covers the economy for The Wall Street Journal. Thanks so much, Harriet.

Harriet Torrey covers the economy for The Wall Street Journal. Thanks so much, Harriet.

Thank you.

Thank you.

And in its first quarter earnings report today, Colgate-Palmolive said it's feeling consumers' uncertainty firsthand as they have been buying less toothpaste and soap. The maker of Ajax and SoftSoap lowered its full-year guidance based on the estimated cost of tariffs, which it expects to be around $200 million for the year. The figure doesn't account for tariffs that have been paused.

And in its first quarter earnings report today, Colgate-Palmolive said it's feeling consumers' uncertainty firsthand as they have been buying less toothpaste and soap. The maker of Ajax and SoftSoap lowered its full-year guidance based on the estimated cost of tariffs, which it expects to be around $200 million for the year. The figure doesn't account for tariffs that have been paused.

Colgate-Palmolive now projects earnings will increase in the low single digits compared with previous guidance in January of mid-single-digit growth. U.S. stocks ended the week mostly higher after a choppy day of trading. Major indexes closed higher for the fourth consecutive day. The Dow traded close to flat, while the Nasdaq composite rose roughly 1.25%.

Colgate-Palmolive now projects earnings will increase in the low single digits compared with previous guidance in January of mid-single-digit growth. U.S. stocks ended the week mostly higher after a choppy day of trading. Major indexes closed higher for the fourth consecutive day. The Dow traded close to flat, while the Nasdaq composite rose roughly 1.25%.

The S&P 500 rose around three-quarters of a percentage point. But analysts aren't sounding the all-clear for markets, cautioning that Trump's tariff policies may have done long-lasting damage to the U.S. 's credibility with overseas investors. Given the rising challenges from hefty U.S. tariffs, China aims to implement more growth-supporting measures.

The S&P 500 rose around three-quarters of a percentage point. But analysts aren't sounding the all-clear for markets, cautioning that Trump's tariff policies may have done long-lasting damage to the U.S. 's credibility with overseas investors. Given the rising challenges from hefty U.S. tariffs, China aims to implement more growth-supporting measures.

According to the state-run Xinhua News Agency, the Chinese Communist Party's top policymaking body said the government intends to cut interest rates and the amount of cash banks are required to set aside at the central bank. It says it will also make full and effective use of existing fiscal and monetary policies.

According to the state-run Xinhua News Agency, the Chinese Communist Party's top policymaking body said the government intends to cut interest rates and the amount of cash banks are required to set aside at the central bank. It says it will also make full and effective use of existing fiscal and monetary policies.