4 warning signs in the economy

The US is not officially in a recession, and critics say the government will change the definition in 2021. But the signs in the economy continue to tell a different story.

home sales

U.S. existing home sales are at their lowest level in more than 12 years, according to a report from the National Association of Realtors.

Although the data show that prices have stabilized somewhat, mortgage rates have resumed their upward trend.

Sales of existing homes have fallen to their lowest level since October 2010, when the country was battling a foreclosure crisis, according to Reuters, which examined the data. This marked the 12th straight monthly decline in sales, the longest such period since 1999.

Existing home sales, which account for the largest share of US home sales, fell 36.9% year-on-year in January.

Walmart and declining revenue

walmart inc. warns that lower consumer spending will affect profit margins and prevent the company from meeting profit targets.

The company’s stock remains on a rollercoaster ride as it faces price increases from many of its product suppliers after what has historically been high inflation.

Higher US consumer prices, higher housing, car and food costs raise fears that the US Federal Reserve may raise interest rates, pushing the economy further into a deeper recession after July.

Home Depot on Tuesday said it also expects profits to decline.

Closing Big Box Stores

At least 800 major stores plan to close stores in 2023.

Walmart joins Bed Bath & Beyond, Gap and Party City, all of which are downsizing and closing, leaving Bath & Beyond with 480 stores compared to 1,500.

Other notable brands closing stores include Macy’s, Big Lots, Amazon Fresh and JCPenny. Tuesday morning, which is also in bankruptcy, is closing 265 stores, according to CNBC.

The main headlines are missing details of other retailers secretly closing stores. These include CVS, Rite-Aid, Kroger, Nordstrom and Best Buy.

Layoffs

Everything from Big Tech to manufacturing is cutting staff.

“There has been a marked increase in layoffs and hiring suspension announcements over the past three months,” said David Peterson, co-founder of Bankdash.com.

“Not only is rising unemployment a key feature of a recession, but companies tend to have a good sense of where the economy is heading and so their actions are a great indicator of the economy as a whole. The widespread nature of layoffs and hiring freezes is a clear sign that companies are worried about the inevitable economic downturn. Companies announcing layoffs include Tesla, Netflix, Ford, Shopify, Carvana, Oracle, and Coinbase. Companies announcing hiring suspensions include JPMorgan Chase, Google, Intel and Facebook.”

– Dwight Vidaman and the wire services