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Most U.S. consumers expect higher holiday prices and a weaker economy, survey finds

1. 57% of consumers expect an economic slowdown next year. 2. Holiday spending expectations fell 10% compared to last year. 3. Younger consumers, particularly Gen Z, anticipate significant spending cuts. 4. Retail growth is expected but slower than historical averages. 5. Caution prevails in consumer spending amidst inflation concerns.

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FAQ

Why Bearish?

The consumer outlook indicates reduced spending, leading to weaker retail performance, impacting S&P 500's consumer discretionary sector.

How important is it?

Consumer sentiment heavily influences retail stocks, which are significant components of the S&P 500.

Why Short Term?

Projected holiday spending declines could affect quarterly earnings, impacting stock prices in the coming months.

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