Strong Consumers – The US Retail Data 🛍

Strong Consumers – The US Retail Data

After uninspiring inflation data, there was extra confusion about the state of the economy. Fortunately, there was more economic data to be released by the United States government, including retail data which shows consumer strength. This week, we’ve discussed how consumer strength has been shown in our favorite days like the Big Game and Valentine’s Day, where record amounts of money have been spent, and that might have been foreshadowing in disguise.

Data from the Commerce Department showed that US retail spending saw a massive rebound in January, rising by 3 percent in what has been one of the largest monthly gains since 2021. This coincides with the overall slowdown in inflation we have seen in the past few months, allowing consumers to have a little bit of wiggle room. Notable figures include a 7.2 percent increase in spending at restaurants and bars, the largest increase since March of 2021, and mostly every category saw rises at different degrees. After a disappointing holiday season, consumers have spent a lot more after it looked like savings was the way to go. This figure is being reflected in the earnings reports of brands like Kraft Heinz and Mondelez, showing that consumers are becoming more comfortable with where prices are currently at despite them being higher than the historical number. As a result of the strong data, paired with an extremely powerful January jobs report, US first-quarter GDP estimates have increased to 2.4 percent according to the Federal Reserve Bank of Atlanta. The US economy shifts between strong and concerning every other day, and we’ll see where it comes out in the end.

Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
The New Chip 💻

AMD has unveiled an AI-focused graphics processor, aiming to challenge Nvidia’s dominance.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.