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Retail sales slumped 0.9% in January, down much more than expected

1. Consumer spending fell 0.9% in January, indicating economic weakness. 2. Retail sales were worse than expected, down from 0.7% in December. 3. Key sectors like sporting goods and online sales declined significantly. 4. Inflation rose 0.5%, impacting real consumer spending. 5. Consumer spending accounts for two-thirds of U.S. economic activity.

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FAQ

Why Bearish?

The decline in consumer spending indicates potential slow economic growth, negatively affecting S&P 500.

How important is it?

Consumer spending data is a critical indicator of economic health and correlates with S&P movements.

Why Short Term?

Immediate impact expected as consumer spending directly influences Q1 economic data.

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