Retailers’ troubles sound the alarm for rest of economy

Off The Charts Retail Slump's Warning

In this July 21, 2021 photo, a consumer shops at a retail store in Morton Grove, Ill. The fastest inflation in 40 years squeezed retailers during the first quarter, alarming investors worried about the broader economy’s outlook. Earnings reports from Walmart, Target and Amazon this month showed higher costs are hurting retailers’ operations. (AP Photo/Nam Y. Huh)

NEW YORK, N.Y. (AP) — The fastest inflation in 40 years squeezed retailers during the first quarter, alarming investors worried about the broader economy’s outlook.

While profits for all companies in the benchmark S&P 500 index grew by about 9% last quarter, retailers’ profits contracted more than 30% from a year ago.

Some economists are worried that retailers’ troubles are sounding the alarm for other areas of the economy too.

Categories: National News