Major retail sales dropped sharply by 1.7% in December, at most two decades.
Regardless of the cause, the obvious drastic changes in spending were sent by economists who tried to mark their growth forecasts. Goldman Sachs reduced GDP in the fourth quarter to 1.9%. Bank of America reduced its forecast to 1.5%.
"The US consumer is holding the global economy on its shoulders," wrote Peter Bokvar, Chief Investment Officer at Bleakley Advisory Group, in a report late last week.
"We better hope it was a lunar release, and that stock recovery … will revive consumer spending," said Bokwar.
Maybe it's not surprising that Americans stopped spending money at the end of 201
The weakness of retail trade by As the fear of a downturn may become a self-fulfilling prophecy, there is a positive feedback loop between consumers and the market High stock prices encourage buyers to spend – and vice versa
The American economist at the Bank America, Michelle Meyer, said that the sharp deterioration in consumer confidence was the largest "negative shock of confidence" since 2011
in 2019 on a sloping basis, – Meyer wrote to clients late last week.
Jan Hatsius, Chief Economist at Goldman Sachs, warned that the decline in retail sales increases the risk that the growth rate of consumer spending has dropped significantly.
But Hatzius believes that the retail deficit in December may turn out to be unreliable, since the economic reports in January indicate a rebound.
Fortunately, the drama of the government's shutdown has ended, and the stock market has come off.
In other words, the shock of trust should be worn, paves the way for a renewal of consumer spending.
But beware of the next market storm. If it lasts a long time, it may be sufficient to curtail the economy.
Buffett's letter is carefully read for his investment advice. This year's memorandum will be designed to understand the slowdown in economic growth in the United States and around the world, as well as what it means for companies and markets.
For Domino, digital and delivery have been a force and a way to try to maintain an edge over competitors like Pizza Hut. A few weeks ago, Domino announced a limited time initiative that uses artificial intelligence to reward people when they buy pizza – even if it's from a competitor. Investors may want to know how digital efforts, similar to those paid last year. This week:
Monday – US markets closed for Presidents' Day
CNN Bu siness Daniel Wiener-Bronner contributed to this report.