by Jharonne Martis.
“The ongoing trade war with China and Mexico ushers concerns about the future stability of the American economy. These mixed signals appear to coincide with improvements in consumer sentiments as well with fears of more expensive goods,” reports Chris Jackson of Ipsos. “The public may be starting to anticipate an imminent economic contraction.”
Jharonne Martis, Director of Consumer Research at Refinitiv, said, “These concerns were very prominent as retailers reported Q1 2019 earnings. Eighty two retailers have mentioned tariffs during their Q1 earnings call. Although they have expressed concern about proposed tariffs imposed on Chinese products, a faster and more direct hit to the consumer’s discretionary income would be tariffs imposed on Mexico. Accordingly, retailers have also lowered earnings guidance.”
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