Latest news with #consumerspending
Zawya
18 hours ago
- Business
- Zawya
US retail sales fall sharply in May
U.S. retail sales dropped more than expected in May, weighed down by a decline in motor vehicle purchases as a rush to beat potential tariffs-related price hikes ebbed, but consumer spending remained supported by solid wage growth. Retail sales fell 0.9% last month after a downwardly revised 0.1% dip in April, the Commerce Department's Census Bureau said on Tuesday. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, decreasing 0.7% after a previously reported 0.1% gain in April. Estimates ranged from a 1.7% drop to a 0.3% increase. Sales last month were also held down by lower receipts at service stations because of a decline in gasoline prices. President Donald Trump's sweeping tariffs have raised fears over global growth, restraining oil prices. But hostilities between Israel and Iran have boosted oil prices. Unseasonably cooler weather likely also hurt sales. Federal Reserve officials prepared to start a two-day policy meeting on Tuesday. The U.S. central bank was expected to keep its benchmark overnight interest rate unchanged in the 4.25%-4.50% range while policymakers monitor the economic impact of tariffs and tensions in the Middle East. A 25% duty on imported motor vehicles and trucks came into effect in April. Retail sales excluding automobiles, gasoline, building materials and food services increased 0.4% in May after an upwardly revised 0.1% fall in April. These so-called core retail sales, which correspond most closely with the consumer spending component of gross domestic product, were previously reported to have dropped 0.2% in April. Consumer spending, which accounts for more than two-thirds of the, economy slowed sharply in the first quarter, and could remain moderate in the April-June quarter. The Atlanta Fed is currently forecasting GDP rebounding at a 3.8% annualized rate in the second quarter. The anticipated surge will largely reflect a reversal in imports, which have fallen sharply as the frontloading of goods fizzled. The economy contracted at a 0.2% pace in the January-March quarter. Downside risks to consumer spending are rising. The labor market is slowing, student loan repayments have resumed for millions of Americans and household wealth has been eroded amid tariff-induced stock market volatility. The uncertain economic environment could lead to precautionary saving. "Past experience suggests the biggest price rises will come in July, though the full impact of the tariffs likely will emerge across the whole of the remainder of the year," said Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics. "That will weigh on growth in real incomes at the same time as a softening labor market will make people cautious with discretionary spending. Meanwhile, households no longer have 'excess savings' or strong growth in stock prices to spur them to spend."
Yahoo
19 hours ago
- Business
- Yahoo
Amazon is holding Prime Day 2025 on July 8-11
Amazon has revealed that Prime Day 2025 will take place on July 8-11, extending the annual sale event to four days this year. Amazon notes that consumers will be able to shop for 'pantry staples and snacks for summer gatherings to home-improvement must-haves, back-to-school supplies, health and personal care finds, family-favorite toys, best-selling books, pet essentials, and even premium and luxury splurges.' For the first time, Amazon is going to introduce 'Today's Big Deals,' which are themed daily drops that feature limited-time deals. Prime Day was a success last year, as U.S. consumers spent $14.2 billion on the sales event, according to Adobe Analytics. The number marked an 11% jump from 2023's $12.7 billion total. The news comes a few months after the e-commerce giant said back in April that it would be bringing back the annual sales event despite tariffs. Sign in to access your portfolio
CTV News
20 hours ago
- Business
- CTV News
U.S. retail sales fall sharply in May
WASHINGTON — U.S. retail sales dropped more than expected in May, weighed down by a decline in motor vehicle purchases as a rush to beat potential tariffs-related price hikes ebbed, but consumer spending remained supported by solid wage growth. Retail sales fell 0.9 per cent last month after a downwardly revised 0.1 per cent dip in April, the Commerce Department's Census Bureau said on Tuesday. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, decreasing 0.7 per cent after a previously reported 0.1 per cent gain in April. Estimates ranged from a 1.7 per cent drop to a 0.3 per cent increase. Sales last month were also held down by lower receipts at service stations because of a decline in gasoline prices. President Donald Trump's sweeping tariffs have raised fears over global growth, restraining oil prices. But hostilities between Israel and Iran have boosted oil prices. Unseasonably cooler weather likely also hurt sales. Federal Reserve officials prepared to start a two-day policy meeting on Tuesday. The U.S. central bank was expected to keep its benchmark overnight interest rate unchanged in the 4.25 per cent to 4.50 per cent range while policymakers monitor the economic impact of tariffs and tensions in the Middle East. A 25 per cent duty on imported motor vehicles and trucks came into effect in April. Retail sales excluding automobiles, gasoline, building materials and food services increased 0.4 per cent in May after an upwardly revised 0.1 per cent fall in April. These so-called core retail sales, which correspond most closely with the consumer spending component of gross domestic product, were previously reported to have dropped 0.2 per cent in April. Consumer spending, which accounts for more than two-thirds of the, economy slowed sharply in the first quarter, and could remain moderate in the April-June quarter. The Atlanta Fed is currently forecasting GDP rebounding at a 3.8 per cent annualized rate in the second quarter. The anticipated surge will largely reflect a reversal in imports, which have fallen sharply as the frontloading of goods fizzled. The economy contracted at a 0.2 per cent pace in the January-March quarter. Downside risks to consumer spending are rising. The labour market is slowing, student loan repayments have resumed for millions of Americans and household wealth has been eroded amid tariff-induced stock market volatility. The uncertain economic environment could lead to precautionary saving. 'Past experience suggests the biggest price rises will come in July, though the full impact of the tariffs likely will emerge across the whole of the remainder of the year,' said Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics. 'That will weigh on growth in real incomes at the same time as a softening labor market will make people cautious with discretionary spending. Meanwhile, households no longer have 'excess savings' or strong growth in stock prices to spur them to spend.' (Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)
Irish Times
28-05-2025
- Business
- Irish Times
Retail sales increase as consumers enjoy real wage hike
The volume of retail sales rose by 1.1 per cent in April as consumers spent more in department stores, on books and newspapers, and on furniture. On an annual basis, sales volumes were 3 per cent higher, the latest figures from the Central Statistics Office (CSO) show. However, when volatile car sales are excluded, the volume of retail sales fell by 0.1 per cent in the month and increased by just 1.1 per cent in the year. The domestic Irish economy is expected to grow at 2-3 per cent this year primarily on back of an increase in real wages (with nominal wages outstripping inflation) and an associated increase in consumer spending. The CSO figures showed the largest monthly volume increases in April were recorded in department stores (+6.4 per cent), books, newspapers and stationery (+2 per cent), furniture and lighting (+1.5 per cent), food, beverages and tobacco (+1.3 per cent) and bars (+0.3 per cent). READ MORE The largest monthly volume decreases were recorded in clothing, footwear and textiles (-1.4 per cent), other retail sales (-1.1 per cent), and electrical goods (-1.1 per cent). The CSO said the proportion of retail sales transacted online was 5 per cent in April. However these figures only cover Irish-registered retailers and exclude transactions on Amazon, the biggest online retailer.
Yahoo
22-05-2025
- Business
- Yahoo
Guardant Health, Evolent Health, Charles River Laboratories, Avantor, and Lumen Stocks Trade Down, What You Need To Know
A number of stocks fell in the afternoon session after the major indices pulled back (Nasdaq -1.3%, S&P 500 - 1.4%) as Treasury yields rose, reflecting market anxiety over a draft federal budget that could worsen the already wide US fiscal deficit. A poor auction for 20-year U.S. Treasury bonds further raised concerns, as weak demand implies investors are becoming more cautious about holding long-dated U.S. debt. As a reminder, the driver of a stock's value is the sum of its future cash flows discounted back to today. With lower interest rates (yields), investors can apply higher valuations to their stocks; when yields rise, that math works in reverse. Adding to the cautious mood were earnings results from retail giants Target and Lowe's, both of which reported weak earnings that missed expectations, pointing to a potential slowdown in consumer spending and further weighing on sentiment. Lastly, some influential voices such as Jamie Dimon (JPMorgan) and Steve Cohen (Point72) have made cautious comments about market, which can sometimes become self-fulfilling prophecies as investors increase their cautiousness and skittishness. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Testing & Diagnostics Services company Guardant Health (NASDAQ:GH) fell 7.4%. Is now the time to buy Guardant Health? Access our full analysis report here, it's free. Healthcare Technology for Providers company Evolent Health (NYSE:EVH) fell 6.6%. Is now the time to buy Evolent Health? Access our full analysis report here, it's free. Drug Development Inputs & Services company Charles River Laboratories (NYSE:CRL) fell 5.7%. Is now the time to buy Charles River Laboratories? Access our full analysis report here, it's free. Research Tools & Consumables company Avantor (NYSE:AVTR) fell 5.6%. Is now the time to buy Avantor? Access our full analysis report here, it's free. Terrestrial Telecommunication Services company Lumen (NYSE:LUMN) fell 5%. Is now the time to buy Lumen? Access our full analysis report here, it's free. Guardant Health's shares are extremely volatile and have had 46 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was about 1 month ago when the stock dropped 5.3% on the news that President Trump criticized the Federal Reserve's approach to interest rate cuts, warning that the pace was slow and could hinder economic growth. Trump's comments added pressure to an already sensitive market, raising concerns about political interference in monetary policy. Meanwhile, Fed Chair Jerome Powell maintained a cautious stance the previous week, highlighting the difficulty of balancing the dual mandate of steady employment and price stability amid the escalating trade tension. Investor sentiment was further dampened by the absence of constructive progress in trade negotiations, especially US-China relations which took a turn for the worse in the previous week. Overall, the outlook seemed more unclear heading into the first quarter 2025 earnings season, as a combination of hard to predict monetary policy and unresolved trade tensions weighed on business confidence. Guardant Health is up 17.2% since the beginning of the year, but at $37.25 per share, it is still trading 25.4% below its 52-week high of $49.94 from January 2025. Investors who bought $1,000 worth of Guardant Health's shares 5 years ago would now be looking at an investment worth $388.59. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Sign in to access your portfolio
