US four largest retailers are slated to report quarterly earnings\nthis week. The reports from Home Depot, Lowe\u2019s, Walmart, and Target are\nexpected to serve as the clearest barometer yet of whether American\nhouseholds are wobbling under the ongoing price pressures. The results\nwill offer a real sense of how consumers are navigating an economy\nsqueezed by surging fuel prices, persistent inflation, and high\nborrowing costs. Investors and economists will watch for signs of\nchanging shopping behaviour, such as a shift to cheaper merchandise or\ndelays in home-improvement projects.<\/p>\n
Bank of America Institute data show total household expenditures on\ncredit and debit cards rose 4.8% in April vs a year earlier, but\neconomists warn of a \u2018K-shaped\u2019 economy that splits demand and incomes.\nIn this model, the divergence between different groups of people is\nwidening; with inflation at 3.8% in April, outstripping wage growth of\n3.6%, financial pressure on low-income households is expected to\nintensify. This widening gap could complicate the Federal Reserve\u2019s path\nunder incoming chair Kevin Warsh, who is due to be inaugurated next\nFriday. Warsh will inherit a rate outlook that suggests inflation\npersistence may keep policy rates higher for longer than anticipated.\nThe higher policy rate directly affects consumer borrowing costs,\nmeaning pressure will continue for businesses and households already\nstruggling to keep up with the cost of living. The US monetary stance\ncould also influence exchange-rate stability and capital flows in\ndeveloping markets. Bank of America economists note that while\nhouseholds retain some short-term buffers such as tax refunds and\nsavings, the distribution of funds is uneven, underscoring the gap\nbetween macroeconomic resilience and the real pressures faced by many\nhouseholds on the ground. US retail giants continue to rank among the\nworld\u2019s biggest revenue earners thanks to their global reach and the\nstrength of American consumer.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/us-retail-earnings-reports-test-consumer-resilience-amid-inflation-1779546010", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }