{"id":2009385,"date":"2023-08-23T13:47:02","date_gmt":"2023-08-23T17:47:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-consumer-spending-forecasts-look-grim\/"},"modified":"2023-08-23T13:51:58","modified_gmt":"2023-08-23T17:51:58","slug":"us-consumer-spending-forecasts-look-grim","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-consumer-spending-forecasts-look-grim\/","title":{"rendered":"US consumer spending forecasts appear bleak."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">12<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fus-consumer-spending-forecasts-look-grim%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2009385&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div>\n<h2>Latest Signs\u2064 of U.S.\u200c Consumer Spending Under\u200b Stress<\/h2>\n<blockquote>\n<p>Latest results and forecasts from <span data-qa-component=\"highlight-text\">retail<\/span>ers ranging from \u200dMacy&#8217;s to Foot\u200b Locker are showing\u200c fresh signs of \u200bU.S. consumer \u200bspending\u2063 remaining under stress heading into the second half of the year.<\/p>\n<p>Middle-income Americans \u2062are spending less as many struggle to pay off existing card debts amid a surge in\u2064 the cost of \u200dliving, raising\u2064 worries for <span data-qa-component=\"highlight-text\">retail<\/span> \u200csector investors betting on more business during the back-to-school and holiday \u200dseasons.<\/p>\n<p>&#8220;It is going to be a\u2064 challenging back half,&#8221; said Telsey Advisory Group \u2062analyst Cristina Fernandez, adding that\u200b consumers are looking for value \u2064and spending on\u2063 buying the things they need.<\/p>\n<p>A bellwether for back-to-school demand, Foot Locker joined rival Dick&#8217;s Sporting \u200dGoods on Wednesday\u200c to\u2062 cut the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wall-st-ends-tumultuous-week-with-strong-rally-as-rate-hike-fears-wane\/\" title=\"Wall St ends tumultuous week with strong rally as rate hike fears wane\">annual profit forecast<\/a>, sending the\u2064 shares of sportswear <span data-qa-component=\"highlight-text\">retail<\/span>ers tumbling.<\/p>\n<p>&#8220;We did see a softening\u200b in trends in July and\u200b are adjusting our 2023<span data-qa-component=\"highlight-text\">outlook<\/span> to allow us to best compete for price-sensitive \u200bconsumers,&#8221;\u2063 Foot \u200dLocker CEO Mary Dillon said.<\/p>\n<p>Both the companies along with Target have warned that profits\u2062 have been under pressure from the loss of inventory due to instances\u200c of\u200d theft at their stores.<\/p>\n<p>Kohl&#8217;s and\u200b Macy&#8217;s also \u200ckept their annual\u200c targets unchanged despite\u200c beating profit expectations for the \u2063second quarter, with the latter warning of weak demand and a faster-than-expected \u2064rise in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-consumer-spending-forecasts-look-grim\/\" title=\"US consumer spending forecasts appear bleak.\">credit card payment \u2062delays<\/a>.<\/p>\n<p>&#8220;The macro environment is having \u2064the lion&#8217;s share \u200cof the impact on credit and is a \u200dreal indicator of where we think the health \u2064of the consumer is&#8230; supporting our cautious\u2063 approach,&#8221; Macy&#8217;s CFO Adrian Mitchell said on Tuesday.<\/p>\n<p>Foot Locker and Macy&#8217;s could\u200d see a bigger hit to\u200d their sales as they cater to lower-to-middle income consumers, said \u2063Thomas Hayes, chairman of hedge fund Great Hill Capital, while \u2064the winners\u200c would include\u200b Walmart and \u200cthe dollar stores that benefit from\u2064 consumers trading down.<\/p>\n<p>Walmart last week raised its \u200bfull-year forecasts and \u200dbeat second-quarter results, benefiting from strong demand for its \u2062low-priced groceries.<\/p>\n<p>&#8220;The consumer is still alive and well, but clearly more <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/theyre-getting-robbed-shrinkflation-hits-consumers-while-biden-inflation-roars\/\" title=\"\u2018They\u2019re Getting Robbed\u2019: \u2018Shrinkflation\u2019 Hits Consumers While Biden Inflation Roars\">price conscious<\/a> this year than last,&#8221; said Art Hogan, chief market \u200dstrategist at B \u2064Riley Wealth.<\/p>\n<\/blockquote>\n<h3>Conclusion<\/h3>\n<p>Despite some positive results, the <span data-qa-component=\"highlight-text\">retail<\/span> \u200cindustry is facing challenges as U.S. consumer\u2062 spending remains under \u200cstress. Middle-income Americans are cutting back\u200c on expenses due to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/larry-elder-highlights-newsoms-failures-at-l-a-area-rally\/\" title=\"Larry Elder highlights Newsom\u2019s failures at L.A. area rally\">high living costs<\/a> and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-admin-cancels-fines-for-illegal-aliens-who-fail-to-leave-u-s-doesnt-serve-our-best-interest\/\" title=\"Biden Admin Cancels Fines For Illegal Aliens Who Fail To Leave U.S.: Doesn\u2019t Serve Our \u2018Best Interest\u2019\">existing debts<\/a>. This trend is concerning for investors who \u200cwere expecting increased\u200c business during the back-to-school and \u200dholiday\u2062 seasons.<\/p>\n<p>Foot Locker and Macy&#8217;s, which cater to lower-to-middle income consumers, are\u2064 particularly \u200cvulnerable to sales declines. On\u200c the other \u2062hand, Walmart \u200dand dollar stores\u200c are\u2062 expected \u2062to benefit from consumers trading \u200bdown.<\/p>\n<p>While there are still opportunities for growth, companies \u200cneed to\u200c be mindful of the price-conscious \u2064consumer. The loss of inventory due to theft is also \u2064putting pressure on \u2062profits for some retailers.<\/p>\n<p>Overall, \u200bthe \u200chealth of\u200d the consumer and the \u2064macroeconomic environment will continue\u200c to \u200cimpact the <span data-qa-component=\"highlight-text\">retail<\/span> sector. It remains to be seen\u200b how businesses will navigate these challenges and adapt\u2064 to changing consumer \u2062behaviors.<\/p>\n<p>(Reporting by Ananya Mariam Rajesh and Aishwarya Venugopal in Bengaluru; \u2064Editing by Arun Koyyur)<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Latest results and forecasts from retailers like Macy&#8217;s and Foot Locker indicate ongoing strain on U.S. consumer spending. Middle-income Americans are cutting back on expenses due to mounting credit card debts and rising living costs. This is causing concern for retail sector investors who were hoping for a stronger second half of the year.<\/p>\n","protected":false},"author":66,"featured_media":2009386,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[544],"tags":[],"class_list":["post-2009385","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-free-beacon"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2009385","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2009385"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2009385\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2009386"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2009385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2009385"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2009385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}