Latest news with #retailspending
Yahoo
3 days ago
- Business
- Yahoo
Data Points to Solid U.S. Retail Spending. But There Are Plenty of Troubling Signs.
Key Takeaways July reversed a decline in month-to-month retail spending, with sales rising 1.5%, according to the National Retail Federation. The trade group and analysts from Bank of America said the number may be benefitting from temporary factors, such as back-to-school spending and Prime Day. Investors will get fresh insight on Friday, when the federal government is slated to release its retail data. Retail spending was solid in July, according to new data. But will it be enough to quell concerns about tariffs and inflation? Retail sales, exclusive of car and gas spending, rose 1.5% from June to July, reversing a 0.3% decrease from May to June, the National Retail Federation said this week ahead of government retail data due Friday. Retail spending is a closely watched measure of consumer financial health; economists expect Friday's report to show July sales up 0.5% from June, according to a Wall Street Journal survey. Sales for the month rose 5.9% year-over-year, but the trade group said it was difficult to determine what drove up spending. Retail sales were relatively weak in June, NRF said, while back-to-school spending and a longer Prime Day may have inflated July's numbers, Bank of America said. Executives at a range of companies have hinted at cautious consumers during the second-quarter earnings season. Wall Street analysts have suggested that shoppers have continued to spend, but sought opportunities to trade down to cheaper versions of desired items. 'It is possible some of the increase in spending was due to retailers passing through current or prospective tariff increases onto customers,' Bank of America wrote in an analysis of credit and debit card spending in July that pointed toward a smaller increase in the number of card transactions per household than in dollars spent. Annual inflation in July was on par with the 2.7% rate reported in June, coming in just below what economists expected. Economists generally believe tariffs will lead to price increases, and potentially, spikes in inflation, though some think that companies have yet to pass along as much of the effect of tariffs to consumers as they may in the second half of the year. Cautious consumer spending has come up on a number of retailers' recent conference calls, including the outdoor gear company Yeti Holdings (YETI), the athletic apparel brand Under Armour (UA) and burger chains Jack in the Box (JACK) and McDonald's (MCD). Lower-priced store-brand products have seen more take-up lately, some grocers and food companies have said. "Guests continue to manage their check by ordering fewer beverages and appetizers as well as trading down to lower-priced items on our menus," John Peyton, CEO of the parent company of Applebee's and IHOP, Dine Brands Global (DIN), said on a recent conference call. The economic climate is hitting low-income consumers, who appear to be getting fewer hours of work while maintaining similar spending levels, harder, Bank of America said. 'The low-end consumer is a consumer that we believe is most sensitive to price increases, is most nervous, and, in some cases, is not leaving the house,' Crocs (CROX) CEO Andrew Rees said on a conference call last week, according to a transcript from AlphaSense. Read the original article on Investopedia
Forbes
18-06-2025
- Business
- Forbes
Forbes Daily: Consumers Pull Back On Spending Amid Economic Anxiety
Consumers raced to spend ahead of President Donald Trump's tariffs. Now, they're pulling back. Retail spending fell 0.9% in May, the second consecutive month of declines as trade wars create economic anxiety. Earlier this year, retail spending accelerated at an unusually high pace, especially for cars. Census Bureau data shows spending on cars and auto parts rose by a massive 8.9% in March, but that boost was short-lived: The May release shows a 3.5% decline. Economists still expect healthy GDP growth in the second quarter, but the 'outlook for consumer spending is cloudy,' Bill Adams, chief economist for Comerica Bank, said in emailed comments. Forbes Daily will take a break for Thursday and Friday in honor of Juneteenth. We'll return to your inboxes Monday, June 23. Getty Images Iran's Supreme Leader Ayatollah Ali Khamenei warned any U.S. involvement in its conflict with Israel will have 'serious irreparable consequences,' after President Donald Trump directly threatened him and demanded an 'UNCONDITIONAL SURRENDER.' Trump's comments fueled speculation about U.S. military involvement in the Israel-Iran conflict, as the president told reporters Monday he wanted to see an end to Iran's nuclear program and is 'not too much in the mood to negotiate now.' Barron Trump is following his family's tradition of cashing in on proximity to power. As the president has made an estimated billion dollars or so on crypto, his 19-year-old son appears to have earned nearly $40 million from his dad's crypto venture—much more money than his older siblings had earned at his age. Illustration by Philip Smith for Forbes So-called crypto treasury companies—public companies that focus on acquiring digital assets like bitcoin—have become one of the most talked-about trends of the year. Since April, more than 30 public companies have announced such intentions, targeting close to $19 billion in capital raises, according to Elliot Chun from Architect Partners, a Palo Alto-based financial advisory firm. The Federal Reserve's rate-setting meeting kicked off Tuesday, with the central bank expected to announce its decision on interest rates this afternoon. The Fed will likely keep rates at the 4.25% to 4.5% range they've stood at since December, despite pressure from President Donald Trump, as the U.S.'s top monetary policy makers have cited the uncertain impacts of tariffs. New rules put into place by the Small Business Administration require businesses to be 100% owned by U.S. citizens or those who have been permanent residents for at least six months to qualify for government-backed small business loans. But buried in the fine print is that the rules also apply to key employees who manage the day-to-day operations of the business, not just the owners. According to a 2023 report, 14% of all managers in the U.S. are immigrants. Miami's 'billionaire bunker' is getting a new resident: An empty lot on Indian Creek Island sold on Monday for $105 million, a record price for a property on the island, which is home to high-profile residents like Amazon founder Jeff Bezos, Donald Trump's daughter Ivanka and her husband Jared Kushner, and retired NFL star Tom Brady. The seller is Mikhail Peleg, a German developer and investor living in Switzerland, though he declined to share information about the buyer. President Donald Trump will issue a third extension for ByteDance, TikTok's China-based owners, to divest from the social media app or face a U.S. ban, ahead of the June 19 deadline, said White House press secretary Karoline Leavitt. It's unclear whether he can continue delaying the ban, though the law signed by former President Joe Biden last year gives him the power to postpone the prohibition for up to 90 days if there is 'significant progress' toward a deal. Senators approved legislation Tuesday to regulate stablecoins, a major win for the crypto industry despite some bipartisan conflict-of-interest concerns related to President Donald Trump's crypto ventures. The bill comes as Trump's family businesses have deepened their involvement in crypto, among a multitude of ways for foreign investors and others who could seek a quid pro quo with the Trump administration could enrich him personally through his family business ventures. MARTIN BERNETTI/AFP via Getty Images As the U.S. dollar has sunk to its lowest level in three years, Americans looking for a travel bargain might consider Argentina: The greenback is up 31% against the Argentine peso compared to last year, largely due to the country's economic woes. I was lucky enough to visit recently and can't recommend it enough—make sure to sample the empanadas, Malbec, and of course, steak. Citizens of the Planet/Universal/Getty Images Neighbors, an app for Ring doorbell users, is mostly used by people looking for lost pets or missing packages. But last week, horrified by the ICE raids in and around Los Angeles, residents started using the Amazon app to alert their communities to immigration agents carrying out searches and arrests. While social media sites and Nextdoor have been used to highlight ICE activity across the U.S. in recent days, Neighbors has been especially popular, with dozens of posts. It allows anyone to post on safety issues in their locale and users can choose to include footage from their Ring doorbell cameras where relevant. Forbes spoke to multiple Ring owners who'd shared warnings about ICE with their neighbors. One named Nic said it's been helpful to know what parts of Los Angeles to avoid, saying she'd seen users posting reminders of people's rights and not to open their doors to ICE agents without warrants. 'I feel like in a time when things are so unfamiliar and scary, small peeks of hope are helpful,' she told Forbes. The posts reviewed by Forbes feature photos and videos of ICE agents, including their locations and, in numerous cases, their vehicle type. Some posts had information on ICE agents near stores like Dollar Tree, McDonald's, Starbucks and Target. Two alerted communities to ICE operations near elementary schools. Still, there are good reasons to be careful when posting on Neighbors or Nextdoor. While Ring did remove a feature where police could request doorbell camera footage through the Neighbors app last year, police can obtain information on users with a court order. Search warrants and subpoenas could be used to demand data from any business with information on those protesting ICE's actions. WHY IT MATTERS The posts pose a dilemma for the Amazon-owned company. Ring prohibits any posts likely to inflame tensions between users, including those discussing politics and 'highly debated social issues.' A Ring spokesperson said those rules haven't changed, declining to provide further comment. ICE didn't respond to requests for comment. MORE Flock's AI Cameras Are Watching Cars All Over America. They're About To Get A Lot More Powerful. Medicaid cuts proposed by Senate Republicans in their version of President Donald Trump's signature policy bill are even steeper than those approved by the House, casting doubt on whether the legislation will pass by the July 4 deadline. The Senate version would extend new work requirements: 64%: The share of Medicaid recipients ages 19 to 64 who already work, per the Kaiser Family Foundation More than $800 billion: The cuts to Medicaid over the next decade in the House version 215-214: The vote tally for the legislation in the House in May, largely along party lines More and more Americans are quitting the corporate world to become 'solopreneurs.' If that sounds appealing, start by leveraging the market value of the skills you've built on the job. And you can start building your personal brand while still working a 9 to 5—doing so lends to your credibility, not to mention easing any financial pressures. Technology is also a key piece to doing more with less, so don't be afraid to introduce automation into the process. Four Pennsylvania men were charged in a scheme to steal tens of millions of dollars in government checks from the Post Office. What online platform did they allegedly advertise the stolen checks on for resale? A. WhatsApp B. Facebook Marketplace C. Telegram D. eBay Check your answer. Thanks for reading! This edition of Forbes Daily was edited by Sarah Whitmire and Chris Dobstaff.
Forbes
17-06-2025
- Automotive
- Forbes
Retail Spending Falls For Second Month in a Row
Retail spending dropped by 0.9% in May—the second month in a row of falling spending as consumers appear to grow more cautious faced with anxiety over potential tariffs as the U.S. government negotiates trade deals with China and the European Union. The decrease in retail spending was driven by a steep decline in car sales, just two months after ... More consumers rushed to make car purchases before President Donald Trump's tariffs were scheduled to go into effect. The relatively sharper decline was driven by falling motor vehicle and car parts sales, which declined by 3.5% in May, according to Census Bureau data released Tuesday morning. The data also indicates consumers are cutting back slightly on food expenditures, with spending at grocery and liquor stores down by 0.7% and spending at restaurants and bars down by 0.9%. Spending on building materials, electronics, and healthcare products all decreased as well, but sales of furniture, clothing, sporting goods, and purchases from general merchandise stores and online retailers slightly increased over the last month. As of June 9, the Federal Reserve Bank of Atlanta is still forecasting a growth in GDP by 3.8% in the second quarter of 2025, and it is unclear if Tuesday's spending numbers will affect this estimate. Retail spending increased at an unusually high rate earlier this year, as economists predicted consumers would try to get ahead of President Donald Trump's planned tariffs on foreign auto manufacturers. Spending on cars and auto parts in March increased by a staggering 8.9%, according to the Census Bureau's most recent data. 'Given that March had seen the strongest monthly sales in two years, we expect some continued weakness in motor vehicle sales in June as the 'pull ahead' effect continues to suppress demand,' Lydia Boussour, the senior economist at EY-Parthenon told Forbes in emailed comments. The Census Bureau initially reported that retail sales continued to increase in April by about 0.1%, but quickly revised their calculations to indicate a slight decrease by 0.1%. Gasoline spending also fell by about 2% in May, likely driven by falling gas prices. Average gas prices have fallen below $3.00 per gallon in 25 states, although industry analysts believe this relief is unlikely to last long. The conflict between Israel and Iran could potentially raise oil prices as it threatens oil shipments through the Strait of Hormuz, which sees an average of 21 million barrels per day, according to the U.S. Energy Information Agency. Experts told Forbes that the most recent data indicates consumers are becoming more uneasy as potential tariffs and international conflict increase volatility in the market. 'While household balance sheets remain healthy, consumers are growing more cautious and increasingly selective with their spending amid lingering policy uncertainty, deteriorating labor market prospects and tariff anxiety,' Bossour said. The EY-Parthenon economist predicted a 'sharp deceleration in spending' the rest of the year before beginning to recover in 2026. 'The US consumer has kept economic growth going despite the tariff threats and trade disruptions,' Chris Zaccarelli, the chief investment officer at Northlight Asset Management, told Forbes in emailed comments. 'If the consumer begins to rollover, then it could lead to layoffs and a vicious cycle of slower spending and higher unemployment.' Zaccarelli said his firm remained cautious, with factors like the pending trade deals with China and the European Union, as well as the escalating conflict in Iran, potentially impacting the market in the near future. However, Zaccarelli also said that this month's decline could still be a 'one-off.' Removing spending on cars and gasoline, overall retail spending has only declined one month out of the year so far.
CTV News
17-06-2025
- Business
- CTV News
Stocks slip on Wall Street on signs of weaker spending by U.S. consumers
Traders Drew Cohen, left, and Joseph Lawler, center, work with specialist Patrick King on the floor of the New York Stock Exchange, Tuesday, June 10, 2025. (AP Photo/Richard Drew) NEW YORK — U.S. stocks are falling following signals that one of the economy's main engines, spending by households, is weakening while Israel's conflict with Iran may be worsening. The S&P 500 was 0.3% lower in early trading Tuesday. The Dow Jones Industrial Average was down 163 points, or 0.4%, and the Nasdaq composite was 0.3% lower. Treasury yields also nudged lower in the bond market after a report said shoppers spent less last month at retailers than the month before and less than economists expected. Solar stocks fell amid worries that Congress may phase out tax credits for renewable energy. Elaine Kurtenbach, The Associated Press
Yahoo
23-05-2025
- Business
- Yahoo
UK shoppers more upbeat but cut back on retail spending
UK consumer confidence has shown signs of recovery in May, according to the latest BRC-Opinium Consumer Sentiment Monitor. Expectations for the state of the economy over the next three months improved to -36, up from -48 in April. Similarly, consumers' outlook on their personal financial situation rose to -12, compared to -16 the previous month. However, anticipated spending on retail declined to 0, down from +3 in April, while overall personal spending expectations remained steady at +10. Personal saving expectations dipped slightly to -5, from -4 in April. These shifts in consumer sentiment coincide with a period of easing geopolitical tensions and modest economic growth in the UK. The recent de-escalation of the US-China trade conflict and the UK's new trade agreements with major economies, including the US and India, may have contributed to the improved outlook. Helen Dickinson, Chief Executive of the British Retail Consortium, commented on the developments: "While agreements with the US and India may have helped this month's boost in consumer confidence, it is hoped the latest EU deal will drive further confidence in the outlook for the economy and personal finances." The over-60s demographic experienced the most significant increase in economic optimism, with their confidence levels rising nearly 20 points. Despite this improvement, they remain the most cautious age group regarding economic prospects. This uptick may be linked to recent stock market recoveries following previous volatility triggered by international trade tensions. Despite the overall rise in consumer confidence, expectations for retail spending have decreased. The anticipated retail spend fell to 0 in May, down from +3 in April, indicating a more conservative approach to discretionary spending. This trend suggests that consumers may still be exercising caution in their spending habits, possibly due to lingering uncertainties in the economic landscape. In light of the current economic climate, there are discussions around potential policy measures to stimulate consumer spending. One proposal is the reintroduction of a tax-free shopping scheme aimed at attracting high-value shoppers from abroad. Such a measure could benefit the retail, hospitality, and leisure sectors, potentially creating employment opportunities and boosting economic growth. As Helen Dickinson noted, "There is more the UK can do to encourage spending and trade: reintroducing a tax-free shopping scheme would attract more high value shoppers from abroad, benefitting retail, hospitality, and leisure, and creating employment opportunities and boosting economic growth." "UK shoppers more upbeat but cut back on retail spending" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
