As the earnings season unfolds, more businesses are sharing perspectives on consumer trends. According to a Bloomberg analysis , retailers are frustrated over the lack of spending on the part of shoppers. And yet, retail sales soared by 1% month-over-month in July .
The sharp rebound from stagnation in June surprised economists who expected an uptick of just 0.3%. The data also threw off analysts who expected consumers to pull back on spending due to stubborn inflation .
Turns out, consumers are spending — they’re just picky about where they shop . For example, spending intentions for leisure and housing are on the rise, according to Deloitte . Sectors like clothing, however, are experiencing low intention levels compared to 2021.
"Consumer spending has been muted this year due to volatile goods spending, with overall spending going up by only 0.3% since year-end 2023," said the report. The University of Michigan’s monthly consumer sentiment index proclaimed July as the worst month for consumers since November 2023.
However, sentiment picked up in August . What Companies Are Saying Home Depot Inc HD felt the sting of homeowners holding off on renovations until interest rates come down . The company’s second-quarter comparable sales decreased 3.
3%, with U.S. comparable sales down 3.
6%, reflecting weaker consumer demand . Macy’s Inc M also saw consumers turning away from more expensive items. Second-quarter sales hovered at around $4.
94 billion — down 3.8% year over.