The economy is weakening as consumers shift toward frugality: Strategist

Target (TGT) released its first quarter report, revealing a drop in comparable sales year over year, adding to growing signs that cracks in consumers' resilience are beginning to form. Is this a signal that the economy is beginning to slow? Founder and president of Rosenberg Research David Rosenberg joins Morning Brief to discuss the recent shift in consumer behavior and how the economy's movements may affect the Federal Reserve's future policy decisions.
"The data aren't supporting that we're in a recession dot, dot, dot just yet. And as for the consumer, it's not contracting. However, you're seeing a major shift in behavior, much more toward frugality. You're seeing that in terms of trading down, you're seeing that in terms of what the retailers are saying in terms of how the consumption patterns are shifting towards staples and essentials and away from big-ticket discretionary items," Rosenberg tells Yahoo Finance.
He also notes that consumers are spending less at restaurants, an "early warning sign" of a "fundamental" shift in behavior. The change may seem trivial, but Rosenberg says it's "actually something that we should be keeping our eyes on."
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[@lindylou7973]

Consumers aren't choosing frugality, they've been forced into it.

[@isaac634]

Shows you how out of touch these guys are…

[@debbieframpton3857]

I was not forced into being Frugal it's just been a way of life for me for many years I prefer to have cash in the bank then a bunch of junk I don't need. No credit card debt for me

[@enthused7591]

First time since 2007 as well. Math is a LOT worse this time though. This housing bubble is 45% larger relative to the amount of money people actually make than 2007. When a fixer upper 3-bedroom costs $325,000 but the identical home was literally $160,000 at the PEAK of the bubble in 2007 you know we're about to fall off a cliff like the world hasn't seen before.

[@slowery43]

Reality and truth are very rarely ever found on Yahoo, Barron's, Jim Cramer, Fortune mag...

[@gilsonsangulukaniphiri5018]

@@isaac634 It could be deliberate.

[@michaelschiemer3]

In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.

[@derrickholfman2]

If you need advice, consider speaking with a financial advisor. Don't get me wrong, you can do it on your own, but financial advisors have a lot more knowledge and expertise in this area.

[@Dantursi1]

you are completely right, Advisors have information and paths that are not disclosed to the public.. I profited $560k in 2023 under the tutelage of my Fiduciary-counselor. Am I selling? Absolutely not.. I am going to sit back and observe how this all plays out.

[@Quasoncaviness2]

This is huge! think you can point me towards the direction of your advisor? been looking at advisory management myself.. seeking ways to invest and make more money with the uncertainty in the economy.

[@Dantursi1]

Annette Christine Conte is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.

[@Quasoncaviness2]

My needs are kind of unique and complex. I'll contact her nonetheless, and I hope I'm able to make something out of it.

[@SCFLEUR]

Why do they keep bringing up pandemic money/savings? That money was gone a long time ago. We are 4 years out already 🙄

[@saffrons12]

They act like it was $50k or something. $2k paid my rent and put gas in my car.

[@debbieframpton3857]

Mine is still in the bank used it for some CDs

[@peterdangelo5882]

Another talking point, much of that money was gone within 6 months. Getting ready to fall apart - should be a wild ride.

[@Spacemonkeymojo]

Smoke and mirrors and gaslighting.

[@brmadden895]

A lot of economic factors precipitate downstream effects. The government injected north of $800 billion into the economy in 2020-2021. A year or so later, the world began to have problems with inflation. That money is not "gone". You might not have it in your possession anymore, but the currency is still in circulation.

[@pinkcrayon1382]

When staying home to cook with and for your own family is seen as a "warning sign" you know your country has lost the plot. Talk about 1st world problem.

[@Aeorocks]

You're so right! I have friends overseas who, if they can't make food that day, they don't eat. They only go out to eat for holidays and birthdays. We have become way too accustomed to having everything done for us, and when we have to do something ourselves, we are doomed.

[@psylee8687]

1st world? Where?

[@CroisMoi]

I went to a birthday lunch yesterday and the place was almost empty. Cheesecake Factory. The prices were so high, and the quality so low. Restaurants are cutting corners and they are not worth it.

[@gilsonsangulukaniphiri5018]

1st world? I'm aware of only ONE world, planet earth.

[@That.Lady.withtheYarn]

We know. We knew that four years ago. People were baking their own bread. But what’s really killing the economy is price gouging by these same companies…. They’re getting record breaking profits on the back of struggling world

[@AcmePotatoPackingPocatello]

Monopolists control prices.

[@anonymousf454]

Gallon of Great Value Distilled Water today at Wal-Mart... $1.34, used to be $0.88. That is insanr

[@Princess-Jellyfish]

A few months of not buying fast food or any frills by 40% of us will show corporations where the power lies. They have kept us divided and arguing over things that ultimately doesn't matter. Talk to your neighbors, build your communities.

[@debbieframpton3857]

I enjoy eating out two to three times a week

[@jayg6434]

@@debbieframpton3857 people are too lazy to cook at home but ok to eat junk food outside 😂

[@bentonja668]

Corporations don't care what we do. Corporations are not dependent on us like we think they are...

[@bentonja668]

The idea that "the people" have any say or power economically is propaganda and brainwashing.

[@wysoft]

"The economy is fine" 5 minutes later... "Please stop trying to save money, it's damaging the economy"

[@angelfieseler5358]

If oil barrel prices are going down why are the prices at the pumps going up

[@That.Lady.withtheYarn]

Greed

[@rxlemon-lime2335]

FTC just brought a case, Oil CEO's COLLUDING WITH FOREIGN OPEC OIL MINISTERS.

[@slowery43]

They will miraculously go down just before eletions

[@thomasbrown7728]

I’ve always been frugal, but I’m getting even more frugal as the prices of things go up. For example, I’ve mostly quit buying fast food and I don’t eat out much anymore. The prices and lack of quality made that a easy choice. Of course, groceries are not cheap, but there’re cheaper than eating out.

[@markdc1145]

We're cutting back everywhere, no more eating out and my wife is taking an extra part-time job. Just trying to keep our heads above water here, that's all we can do.

[@ryansarkinian7196]

Everyday Americans struggling with affording basic goods, while our government sends 30 billion tax dollars to Israel.

[@flyhi2773]

Plus Ukraine, foreign aid and heck knows what else. Illegal migrants. UK same.

[@superblondeDotOrg]

Mention the growing population of homeless, the ultimate frugality

[@zacanger]

We're broke, man.

[@myday2704]

2 weeks to flatten the curve....still in economic damage 4 years later

[@electrodynamicorb6548]

You should always be frugal.

[@bentonja668]

The migrants replacing Americans in the workforce and economy are frugal.. Americans? Not so much.

[@anniesshenanigans3815]

I am paying off my house and getting rid of the extortion insurance. FEMA is to blame for THAT. I have cut back to 2 meals a day 5 out of 7 days a week.

[@missdesireindependance5194]

Tornado activity is increasing. Protect your investment.

[@AcmePotatoPackingPocatello]

Food Monopolies raise prices, smaller packages, still maintain 4% growth yoy. The NOW into the FUTURE. What happens when political system is bought off ? ... Nothing .

[@ChrystalFitness]

The numbers are being skewed so that GOV doesn’t have to admit the country is in a recession. This will be like the ‘08 recession. GOV will recalculate numbers a few years later; then, admit the true state of the economy.

[@MrNiceGuy500]

We are being lied too big time

[@flyingcee]

Well, the fact is that the vast majority’s life has been better in the last couple of years then ever before

[@FaintAura]

@@flyingcee source: just trust me bro

[@TroyHanson-ch6nm]

We are long past a recession its called a depression now. Open your eyes pay attention

[@ChrystalFitness]

@@TroyHanson-ch6nm you are absolutely correct. We have been a recession for 18 months, incidence with traditional numerical tracking…that is pushing us to a current Great Depression.

[@iWendyful]

I really hope this means housing prices will come down.

[@garybowler5946]

Since covid we've been eating alot of rice and beans, and not those fancy canned beans. Dried beans we cook in our pressure cooker. Throw in some vegetables and that's dinner.

[@nickvin7447]

Why do you want rate cuts so badly in such a "hot" economy?

[@That.Lady.withtheYarn]

Because it easier to blame inflation that companies admitting to price gouging.

[@nickvin7447]

@@That.Lady.withtheYarn Companies are not "price gouging" genius, costs are up due to government spending.

[@shellylofgren]

America is currently plagued by the hydra-headed evil duo of inflation and recession. The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..

[@donna_martins]

Every day we have a new problem. It's the new normal. At first we thought it was a crisis, now we know it's a new normal and we have to adapt. this year will be a year of severe economic pain all over the nation.. what steps can we take to generate more income during quantitative adjustment?I can't afford my hard-earned 180k savings to turn to dust

[@MrNiceGuy500]

Raise interest rates to be higher than inflation. We need 27% interest rates

[@Hot_Stank653]

The consumer is pretty bad off 😢😢😢

[@davidohlman7236]

Weird way of saying the economy sux...

[@JuanBáez-q7k]

I shifted toward frugality , and austerity , because of the change from moderate inflation stil 2019 , but the begining of 2020 with the six trillions of dollars given away to every citizen , big corporations , it shifted from moderate to rampant inflation .

[@fgonzalez78959]

Pandemic prices still persist!

[@myday2704]

2 weeks to flatten the curve = 4 years so far...

[@angelachanellehuang5663]

I budget

[@TomokoAbe_]

Health, homeowner's, and auto insurances will bleed your savings--if you have a chronic illness all your assets will go to hospitals and other healthcare costs. With all these catastrophic storms you can expect your homeowner's insurance to REALLY rise in price, or you may get dropped and will be forced to get a much higher policy.

[@flyingcee]

All economies, at any point in time, are dealing with uncertainties. The future is always uncertain… Rosenenberg predicted a deep recession for the 2nd half of 2023. Where was it??? So much about the pundits. At a certain point a recession will come, no doubt - the only economy where there is “never” a recession is the managed, autocratic/populist economy, because that is in a constant recession and people get used to constant bad times. If there is no comparison with good times, then the bad time becomes the baseline. E.g. like in Russia…

[@XMRshark]

The shopping malls going down in the 2010s didn't cause a recession.

[@Dude11fire]

Dude has the stillest, deadest eyes I've ever seen on here.

[@BoomBurster]

Bro looks like one of the banking goblins from Harry Potter

[@Iquey]

Bruh it's just the blue/grey eyed german stare 😂

[@Sir_Ray_LegStrong_Bongabong]

i agree to be frugal

[@tcmcanoer]

Ty for doing a review after a full year

[@randyscott3386]

Just go out and look at the shoes on the peoples feet . The holes in their good jeans . In the line at the store with just one thing .

[@drewconway7135]

Why are you calling this an “alert”? The graphic in the lower corner of the screen is super distracting 👎👎

[@Anonymous-wb3nz]

Grow up.

[@wrongwayeric]

We could just vote Trump and be done with Bidenomics

[@pinkcrayon1382]

I'll pass. I am glad my personal financial choices have not left me so desperate that I would be willing to sell my integrity and basic decency (not to mention Democracy) for the false HOPE that I could save a few bucks on groceries or a tank of gas.

[@cherylT321]

@@pinkcrayon1382 Good points!

[@katharenchamberlain5721]

@@pinkcrayon1382 Amen!

[@laurijohnson7754]

Yeah as a senior what do you do? IRAs will be getting a correction, my pension is on shaky ground, you can’t trust you will be getting all of the SS you were promised, Medicare is shaky. But…. You need to plan for your retirement. How???,?

[@debbieframpton3857]

I'm 70 I'm not worrying

[@ryanburt1094]

I’m pissed

[@slowery43]

Oh NOOO! The litle Princess is pissed! Everyone quick alert the press, tell everyone you know that Ryan is pissed. Are you always this dramatic seeking some attention cupcake? You need a hug or some warmed milk?

[@sunso1991]

Gov & World EconF Policy: Frugality! I choose you! Hit the peasants with poverty and frugality blast!!! Fruggggal~ Fruggggal~

[@sheabilladeau1392]

Why cut back when Bidenomics is here to save us?

[@Sparky-ww5re]

😂😂

[@tonioyendis4464]

The economy is strong, the GDP is positive! People continue to spend, but these folks that hope for doom & gloom keep getting it wrong. Don't allow these folks with political-agendas to throw you off.

[@mnrichards100]

You’re clueless

[@johnjohn-gt4eg]

@@mnrichards100 he must be talking about Russia and China

[@B_knows_A_R_D-xh5lo]

🤑🤑🤑💸💸🤑💸🤑💸🤑

[@rui-9-cs315]

mark

[@akfeast9058]

Maybe price gouging backfired?

[@AnonYmous-kg4ht]

Who wrote this, big capitalism?

[@limolnar]

Late-stage capitalism at work. Unless we get a doubling of the minimum wage, pride controls on food, as well as government supports for home ownership it's not going to get better.

[@jellyfrosh9102]

Nice trolling bro, 9/10

[@bentonja668]

Todays America = late 1980's Soviet Russia