WS #15703
Underlying economic weakness is becoming more apparent, with U.S. pending home sales sinking to their lowest level since 2014 and household delinquency rates rising to 7.2%. In the consumer discretionary space, McDonald's CEO warned that weak traffic and stubborn inflation are becoming the new normal. This data suggests that the consumer is under significant strain, which could lead to a re-rating of consumer-facing stocks if earnings reflect this deterioration.
Consumer and Housing Stress
Underlying economic weakness is becoming more apparent, with U.S. pending home sales sinking to their lowest level since 2014 and household delinquency rates rising to 7.2%. In the consumer discretionary space, McDonald's CEO warned that weak traffic and stubborn inflation are becoming the new normal. This data suggests that the consumer is under significant strain, which could lead to a re-rating of consumer-facing stocks if earnings reflect this deterioration.