Profit Recession Ends, Concerns Raised About Consumer Spending

Profit recession ends as retailers report declines in same-store sales, raising concerns about discretionary spending. Muted inflation data raises hopes for improved consumer sentiment and affordable housing. Consumers spend more on transportation, food, and general merchandise, but less on furniture and clothing. Strong job and retail sales data may have led to a belief in a stronger economy, but concerns remain about high inflation and rising interest rates.