What recession? Walmart says consumers are still spending
Walmart remains cautious about the financial health of its shoppers, but executives at the retail giant do not see a full-blown downturn on the horizon.
Walmart remains cautious about the financial health of its shoppers, but executives at the retail giant do not see a full-blown downturn on the horizon.
In an interview with CNBC, Walmart Chief Financial Officer John David Rainey said that the company decided not to raise expectations for the second half of the year given uncertainties like the 2024 election and unrest in the Middle East that could up-end consumer sentiment.
But he said shoppers' activity had been stable in the first six months of the year. The sentiment was echoed later Thursday as the Commerce Department reported that nationwide retail sales unexpectedly popped in July.
“In this environment, it’s responsible or prudent to be a little bit guarded with the outlook, but we’re not projecting a recession,” Rainey said, as the company released its latest quarterly results Thursday.
Whether the U.S. is headed toward a recession, usually defined as two-consecutive quarters of negative growth, has been a hot topic among economists and business leaders for months. A strong economic recovery from the pandemic has seen U.S. gross domestic product (the broadest measure of economic output) continue to rise. But efforts to bring inflation down with higher interest rates have led to some concern that the economy could see a period of contraction.
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