Home Depot has just issued this warning concerning the economy
Sales will be between 3 and 4%, which has alarms on the economy.
Home Depot The alarm sounds about people who spend less in renovation projects, reflecting a concern about interest rates and the economy. During their results for the second quarter of the 2024 fiscal year, the company says that it expects sales to occur between 3% and 4% in 2024, compared to 2023. The previous wait was 1% drop. "The underlying long-term fundamental principles supporting the request for improvement in the house are solid," said Ted Decker, president, president and chief executive, in a press release . "During the quarter, higher interest rates and greater macroeconomic uncertainty put pressure on consumers, which leads to lower expenses in domiciliary renovation projects." Here are 6 other warning signs that the economy can be declined.
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Unemployment escalation is generally a significant warning sign. "Seeing an upcoming economic crisis is a bit like reading tea leaves, but some conventional signs do not lie," said Nathan Jacobs, principal researcher in money editors Do . "In addition, when everyday people are starting to doubt the economy and maintain their money instead of spending, companies take a direct hit."
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Growing national debt
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The increase in national debt can be an economical red flag, according to experts. "A significant increase in national debt could be a sign of an economy in difficulty," said Tribeca Capital Group, LLC. "Although borrowing can stimulate economic growth, excessively high debt levels can arouse concerns about the country's ability to reimburse its loans, which can have an impact on economic stability."
A slowdown in manufacturing could be a sign of an economy in difficulty. "This can be caused by a reduction in the demand for products and services, which can lead to layoffs and a decrease in consumption expenditure," said financial expert Stephen Clark to Go banks.
"The yield curve shows if bond investors prefer short -term or long -term debt," explains Marsh McLennan Agency . "When reversed, this could mean that they prefer long -term investments due to market expectations."
A tumultuous stock market could express problems for the economy. "The stock market rises and descends every day, but if the S&P 500 or Dow Jones Industrial Average (DJIA) fall a lot, this means that investors are concerned about the future of the market," said the Marsh McLennan agency .
Housing prices reflect the health of the economy. "When the prices of houses drop, it could be a sign that the economy is getting worse," said Marsh McLennan Agency. "This often happens in places where people build too many houses or buy and sell too many houses. This can also affect the credit market."
