Money Minute Friday 11 October: funds, inflation and confidence

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In corporate news this morning, we get trading updates from fund managers Jupiter and Man Group. The industry in general is facing tough competition from cheap passive funds, and that’s not likely to change any time soon.

In economic news, over in the eurozone, we get the latest readings on inflation from both Spain and Germany.
This afternoon in the US, we get the University of Michigan consumer confidence index for October. Consumer spending is responsible for the majority of America’s GDP. So consumer confidence is important. If consumers feel secure in their jobs and confident about the outlook, they spend. But if they fear losing their jobs, or that political turmoil will start to have a direct impact on their own lives, they will be far more thrifty.
Confidence has held up well. With interest rates low and employment high, consumers have been able to shrug off headlines about recession and impeachment. But the index is worth watching for signs that consumer resilience is wearing thin.


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