There are so many conflicting economic indicators and comments circulating right now that it can be difficult to get an overview of the situation for consumers.

Walmart Inc. WMTthe world’s largest retailer, beat Wall Street forecasts for second-quarter earnings and revenue, reporting net income of $4.5 billion (compared to $7.89 billion a year earlier) and revenue of $169 million (compared to $162 million a year earlier).

The company also raised its full-year guidance, predicting revenue to rise 3.75% to 4.75%, compared to the previous forecast of a 3% to 4% increase in revenue. Adjusted earnings are expected to be between $2.35 and $2.43 per share, above previous expectations of 3% to 4%, CNBC reported.

During the conference call on Thursday, CFO John David Rainey He said consumers are spending money, but economic indicators continue to force the retail giant to proceed with caution.

“While we have not seen any further deterioration in consumer health in our business, other economic data and the global situation suggest that we should continue to remain appropriately cautious in our outlook,” he said.

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Two days earlier, the retail giant Home Depot Inc. HD lowered its 2024 revenue forecast, saying it expects comparable sales to decline 3% to 4% (compared to the 1% decline previously forecast), amid concerns that higher interest rates will cause consumers to hold back on spending.

“There is simply a lot of noise in the political and geopolitical environment, unemployment has risen, inflation continues to eat away at disposable income,” said CEO Ted Decker said during the quarterly earnings conference call on Tuesday.

“And I think people just paused over the course of the quarter or longer because of these macroeconomic uncertainties.”

Home Depot reported second-quarter profit of $4.7 billion, up from $4.6 billion a year earlier. Revenue was $43.2 billion, up 0.6 percent year over year, while comparable sales declined 3.3 percent year over year.

Meanwhile, retail sales in the U.S. rose 1 percent in July from the previous month and 2.7 percent from the same period last year, according to a report from the U.S. Labor Department on Thursday. However, delinquencies on credit card payments rose by $27 billion in the second quarter to a record $1.14 trillion, according to an Aug. 6 report from the Federal Bank of New York.

While higher retail sales, albeit financed through credit cards, might indicate that consumers are doing well, falling commodity prices suggest the opposite, CNBC reported.

The Invesco DB Global Bond Fund DBB has fallen more than 7% over the past month, while crude oil futures fell 14% from July 5 to August 5.

“When it comes to commodities, the entire asset class is coming under pressure,” says Rob Ginsberg, managing director of Wolfe Researchit informed customers in a message.

“We view this general decline in commodity prices as another warning about the state of the economy.”

And while retail sales rebounded, the Labor Department’s July employment report showed unemployment rose 0.2 percent from June to 4.3 percent.

Read more:
• Home Depot CEO says ‘Inflation continues to eat away at disposable income’: Are home repairs being put off due to the economy?

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