Inflation worries weigh on US consumer confidence in May - Reuters
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The story
US consumer confidence deteriorated further in May as inflation concerns, high gas prices, and elevated cost of living weigh on sentiment — with surveys showing roughly 2-in-3 Americans cutting back on spending. The setup creates a bearish feedback loop: if consumption softens materially, discretionary retailers and consumer credit names face downward estimate revisions ahead of Q2 prints.
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Wrong ifEquity markets are at all-time highs and sentiment surveys have repeatedly failed to predict spending collapses post-COVID — a resilient jobs market or a hot summer travel season could invalidate the thesis entirely, squeezing shorts sharply.
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