Consumer confidence hits 6-month high
American consumers felt more confident this month, shrugging off a rocky stock market and heightened trade tensions between the United States and China.
The Conference Board, a business research group, says its consumer confidence index rose to 134.1 in May from 129.2 in April. The reading was the highest since November.
The index measures consumers’ assessment of current economic conditions and their expectations for the next six months. Both improved in May. Americans’ evaluation of today’s economy hit the highest level since December 2000.
Their optimism reflects a healthy job market. The U.S. unemployment rate has dropped to 3.6%, near a 50-year low.
Sports Illustrated sold for $110 million
Sports Illustrated magazine has been sold for $110 million to a company that specializes in managing fashion, entertainment and sports brands, including marketing rights to Shaquille O’Neal and Muhammad Ali.
The seller, Meredith Corp., will continue running the print edition and the website SI.com for at least two years. Its editor and publisher are staying on, and the magazine will have editorial independence.
The deal lets Sports Illustrated grow in new areas such as esports, while Meredith can continue to “produce independent, award-winning journalism and storytelling,” Sports Illustrated Editor-in-Chief Chris Stone said in a statement.
It’s not clear what will happen after two years, though it’s possible Meredith and the new buyer, Authentic Brands Group, could extend their licensing deal, terms for which weren’t disclosed.
Meredith has long published Martha Stewart Living magazine under a licensing deal. “We believe we will have similar, great success developing the vitality and profitability of Sports Illustrated,” Meredith spokeswoman Jill Davison said.
iPhone sales drop in quarter
Apple’s biggest cash cow, the iPhone, continued to suffer weaker sales around the world in first quarter of the year as Chinese tech giant Huawei flexed its muscles and claimed more market share from Apple and its longtime rival, Samsung.
That’s according to new data from tech research firm Gartner, which on Tuesday released its latest report on the state of the smartphone market. According to Gartner, worldwide smartphone sales during the first quarter of the year dropped to 373 million units – a 2.7% decline from the same period a year ago. The main reasons cited for the drop were rising prices and slower rates of improvements in phone features that have caused consumers to extend the amount of time they are taking between phone upgrades.
Gartner said that Apple saw its iPhone sales fall to 44.6 million devices from 54.1 million in the first quarter of 2018, while its share of the worldwide market dropped to 11.9% from 14.1% a year ago. Gartner analyst Anshul Gupta said that even though Apple cut iPhone prices in several markets during the quarter, the move wasn’t enough to stoke demand and raise sales.
“Apple is facing longer replacement cycles as users struggle to see enough value benefits to justify replacing existing iPhones,” Gupta said.
The U.S., Apple’s largest smartphone market, saw total smartphone sales fall by 15.8% during the first quarter.
Chinese tourism to U.S. declines
After more than a decade of rapid growth, Chinese travel to the U.S. is falling.
Travel from China to the U.S. fell 5.7% in 2018 to 2.9 million visitors, according to the National Travel and Tourism Office, which collects data from U.S. Customs forms. It was the first time since 2003 that Chinese travel to the U.S. slipped from the prior year.
Friction between the U.S. and China is one reason for the slowdown. The Trump administration first imposed tariffs on Chinese solar panels and washing machines in January 2018, and the trade war has escalated from there. The U.S. now has a 25% tariff on $200 billion worth of Chinese imports, while China has retaliated with tariffs on $60 billion of U.S. imports.
Last summer, China issued a travel warning for the U.S., telling its citizens to beware of shootings, robberies and high costs for medical care. The U.S. shot back with its own warning about travel to China.