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Can’t figure out this economy? Walmart, Home Depot are having trouble, too



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A worker stocks the shelves at a Walmart store on January 24, 2023 in Miami, Florida.Joe Raedle | Getty Images News | Getty ImagesIf you think the economy is confusing right now, consider how baffling it must look to Home Depot and Walmart.Last week, the two big retailers sent cautious signals about the health of the U.S. consumer. In a nutshell: Walmart said U.S. consumer spending started the year strong, but that it expect households to back off through the year, producing weak fiscal-year 2024 U.S. sales growth of 2 to 2.5 percent. Home Depot said consumer spending is holding up, but that it expects a flat sales-growth year overall, with declining profits.Indeed, the latest inflation read from last Friday’s core personal consumption expenditures index was hotter than expected, showing a consumer that continues to defy expectations. Friday’s PCE showed consumer spending rose more than expected as prices increased, jumping 1.8% for the month compared to the estimate of 1.4%. From the big-box retail earnings to declining hopes that disinflation would be a straight line down in 2023, the latest news from the markets and economy highlight just how hard a job the Federal Reserve has …

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