Consumer Stocks’ Struggles Are Denting Hopes for a Soft Landing

The confidence of US shoppers, which seemed indomitable until very recently, is a key underpinning of the bullish expectation that the US economy might avoid a recession, despite the Federal Reserve’s aggressive interest-rate hikes. But now signs are emerging that consumers may be feeling the pinch.

“The triple whammy of higher interest rates, higher energy prices, and the restart of student loan repayments, are all likely to weigh on the consumer, especially the lower-end income cohort,” said Keith Lerner, co-chief investment officer at Truist Advisory Services. That can make the economy “harder to land.”

Though initial weakness has started to show, some proponents of the soft landing scenario are still undaunted. Bank of America Corp. Chief Executive Officer Brian Moynihan said his firm’s strategists still expect a soft landing for the US economy, spurred by continued strength in consumer spending.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Retail stocks: Investors see 'cracks in the consumer' as early holiday shopping gets underwayConsumers aren't as optimistic about the holidays as they were back in June.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Nike earnings preview: Wholesale sales, China and consumer demand in the spotlightNike is set to report earnings on Thursday as investors remain focused on any signs of a consumer slowdown in North America and any impacts from slower growth in China.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Ant Consumer Finance Arm to Raise $616 Million for Growth(Bloomberg) -- Ant Group Co.’s consumer finance affiliate is raising 4.5 billion yuan ($616 million) from investors to revive growth after regulators wrapped up a multi-year crackdown on the Jack Ma-backed financial technology giant.Most Read from BloombergChina Puts Evergrande’s Billionaire Founder Under Police ControlElon Musk Wins US Space Force Contract for StarshieldLululemon Strikes Deal With Peloton for Fitness Content, Will Ax Mirror DeviceCitadel Is Ready to Fight With SEC Over WhatsApp
Source: YahooFinanceCA - 🏆 47. / 63 Read more »