A slowdown in the consumer economy began at the end of 2022 & flat consumer spending is expected for 2023. This reflects a demand shift from goods back into services, as covid dynamics reverse themselves all the way.
It’s still a good time to be a homeowner or landlord given a housing shortage that more than offsets the effect of higher mortgage rates (which are beginning to moderate).
We are stuck in a waiting period as it is too soon to tell how much gas the consumer has left in the tank, how much downsizing is left for corporate America (hopefully none), and what lagging effects will come from very aggressive rate hikes in a supply-constrained economy.
Lowe’s fiscal 3Q23 sales were healthy (domestic comp sales increased +3% y/y) as consumers tapped their savings and disposable income.
We want to spotlight Target this week which provides valuable insight on consumer spending.
Bad economic news and stock market rebound?
Home ownership is a very important social objective, and the key is to achieve this by consistently maintaining low mortgage rates while also helping to strengthen consumer finances to achieve this end.
Forecasting Limitations, Bond Bubbles and Should Costco Run the US Government?
Check out our new corporate insights for this week!
Wingstop’s solution to solving inflation.