If This Consumer Spending Chart Doesn't Change Direction, Look Out Retail Stocks



POSTED BY Ed (5 mths ago)
Real consumer spending has been anything but gangbusters in recent months. If that doesn't reverse course, retail stocks could take a hit this summer

With the Amazon (AMZN - Get Report) beast breathing down their necks, the last thing struggling retailers need is a cautious U.S. consumer.

Yet, that's exactly what they have gotten in recent months -- and if it persists, retail stocks are likely to take it on the chin this summer. Real consumer spending took a nosedive in the first quarter (chart below) as consumers assessed the impact President Trump's tax reform plan. Not helping matters was a more volatile stock market, rising inflation and a cooling U.S. labor market. In turn, consumer sentiment has remained stuck in a range since February.

Retail stocks have followed suit.

More https://www.thestreet.com/investing/if-this-consumer-spending-chart-does-not-turnaround-lookout-retail-stocks-14587266

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