Eurodollar University The Retail Death Spiral Has Begun
May 16, 2025
Retail giants are feeling the pinch as Walmart's struggles highlight a broader economic malaise. Sales figures are declining while the pressure of rising tariffs looms large. Manufacturing output is taking a hit, suggesting consumers are tightening their belts. The disconnection between the robust job market perception and the financial strain on everyday consumers reveals a fragile economic landscape. This precarious situation hints at possible deeper challenges lurking around the corner.
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Walmart Warns of Price Increases
- Walmart reveals a tough reality of rising tariffs forcing unavoidable price increases.
- This will likely lead to consumers cutting back due to unaffordability, signaling economic fragility.
Retail Sales Show Weak Demand
- Retail sales data revisions reveal weaker consumer spending than previously reported.
- The splurge ahead of tariffs in March was followed by flat or falling sales, indicating softening demand.
Producer Prices Show Margin Squeeze
- Producer prices declined sharply, highlighting a slump in business margins despite rising tariffs.
- Businesses are absorbing higher costs, unable to pass them onto customers due to weak demand.