More of tomorrow's headlines today at HP. In the end, perhaps it's a good thing that Americans are going to cut back on the consumer spending orgy, especially during the Holidays, which I've always found disgusting.
Full disclosure: I'm short retailers PSUN, HD, LOW, RTH, AMZN and CC (so far)
A sharp decline in sentiment may signal a grim holiday for retailers and trouble ahead for the economy
Retailers, prepare to get Scrooged this coming holiday season. Consumers are becoming increasingly pessimistic about the economy as they worry about jobs, the weakening housing market, and high oil prices.
Americans have already cut back on entertainment, eating out, and all sorts of discretionary spending. The report may signal trouble ahead for consumer spending—and perhaps for the overall economy.
Early reports of August retail sales show that shoppers of all stripes are already cutting back, from the lower-income shoppers at Dollar General (DG ) to the more affluent who buy their linens and dishes at Williams-Sonoma (WSM ).
P.F. Chang CEO Rick Federico says he hasn't seen anything like this for over 15 years. "There have been other ups and downs, but none where the industry is seeing discounts fall across the segment for a prolonged period of time," says Federico.
With all these worries weighing them down, it's hard to imagine consumers opening their wallets wide during the upcoming Christmas season. They may have to make due with other expressions of holiday cheer.