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



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POSTED BY Ed (9 days 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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