Business

Here we bring you business news affected both our economy and our daily lives.

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Higher inflation in 2024 likely: NABE

By Suzanne O’Halloran – FOXBusiness

Inflation is likely to stick around at higher-than-desired levels for the rest of the year, according to a new survey by America’s top economists. 

“With the higher inflation expectations, panelists now anticipate the Federal Reserve’s Open Market Committee will cut rates by half a percentage point – down from three-quarters of a point and to occur later in the year than previously expected” wrote National Association of Business Economics President Ellen Zentner, who is also chief U.S. economist at Morgan Stanley.

NABE’s May survey, which includes 43 professional forecasters, now pegs inflation to stall at 2.6%. While down from April’s consumer price index reading of 3.4%, it remains above the Fed’s preferred 2% target, a level expected to green-light interest rate cuts. Still, prices have come down sharply from the 9.1% peak. 

About 48% of market participants see the Fed cutting rates for the first time in…Read more here.

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Under Armour to lay off employees as part of restructuring plan

Daniella Genovese / FOXBusiness

Under Armour Inc. is initiating a restructuring plan to turn around its mounting losses. 

Founder Kevin Plank, who was brought back as CEO last month after stepping down at the end of 2019, told analysts that he is working on cost management and implementing necessary strategies to grow the brand. 

This includes an undisclosed number of layoffs. The company said it plans to take a charge of between $7 million and $15 million in employee severance and benefits costs.

FOX Business reached out to Under Armour for comment.

The company will also re-prioritize its core men’s apparel business, which the company took its “eye off of,” Plank told analysts on a Thursday earnings call. 

According to Plank, who stepped down after a series of scandals, the loss of focus on its core men’s apparel business permitted the company, particularly in North America, “to become…Read more and see video here.

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Many US consumers staying away from EVs due to lack of charging availability: report

Eric Revell – FOXBusiness

American car buyers’ interest in purchasing electric vehicles (EVs) dipped compared to a year ago, in part due to concerns about adequate charging infrastructure, a new study from J.D. Power shows.

The J.D. Power 2024 U.S. Electric Vehicle Consideration Study found that for the first time since the study’s inception in 2021, consumers looking to buy a new car were less likely to consider buying an EV.

It found that 24% of car shoppers say they’re “very likely” to consider buying an EV, a decrease from 26% last year, while the percentage of those who said they’re “overall likely” to consider purchasing an EV declined to 58% from 61% in 2023.

Among car shoppers who said they’re “somewhat unlikely” or “very unlikely” to buy an EV, the lack of charging station availability was the leading reason given by respondents, with…Read more here.

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You might get a bigger Social Security check next year. Here’s why

Meghan Henney / FOXBusiness

Social Security recipients are on track to receive a cost-of-living adjustment (COLA) next year that is bigger than previously expected as inflations remains uncomfortably high.

Mary Johnson, a retired Social Security and Medicare analyst, estimated the adjustment could be about 3.2%, based on April inflation data, which showed the consumer price index climbed 0.3% from the previous month and is up 3.4% from the same time last year.

The annual Social Security change is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, or the CPI-W, from July, August and September. The CPI-W also posted a 3.4% increase in April.

Should Social Security beneficiaries see a 3.2% increase in their monthly checks next year, it would mark a steep decline from 2023, when recipients saw an 8.7% bump. However, it remains higher than the 2.6% average increase recorded over the past two decades. Read more and see video here.

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