Target just issued a very concerning earnings report. Stating that their sales dropped and fewer customers are coming into the store. A concerning signal about the health of the US consumer in 2024.
In particular – Target is warning that inflation-battered consumers across America are now starting to cutback on spending. A signal that the economy might not be as strong as people think. With higher interest rates set by the Federal Reserve starting to take their toll on spending.
This suggests that the economy is slowing fast. Something that is apparent to many Americans, with consumer sentiment/confidence among Americans reporting based on personal experience already being in Recession/Depression levels.
One reason confidence is declining is because of inflation. Another is because of record credit card debt and skyrocketing delinquencies. A trend observed by the Federal Reserve Bank of St. Louis.
Interestingly – Walmart, Target’s rival, had a good earnings report. With sales increasing by 4% YoY compared to a 4% decline from Target. Suggesting there’s different things happening in the economy based on the consumer and what stores sell.
You know it's bad when …… 🔥🔥🔥 pic.twitter.com/Sym3hTnGMm
— Wall Street Silver (@WallStreetSilv) May 29, 2024
According to the NY Fed's latest consumer survey, the job market continues to cool. #hopE pic.twitter.com/K2fBYzZdaO
— Kantro (@MichaelKantro) May 28, 2024
Data reveals rising economic ‘distress’ across America despite post-pandemic growth