Consumers resilient but many retail stocks are on the sale rack

Consumer strength, lower-income spend improving

Much of the consumer survey data suggests that consumers feel squeezed and are increasingly frustrated by inflation, but BAC credit and debit card spending data tells a different, more positive story. And importantly, it's not just higher income consumers who are spending. Recent data has shown improving growth from lower income consumers, even when excluding gasoline. Aditya Bhave, Head of US Economics for BofA Global Research, and Chris Nardone, Hardline and Broadline Retail analyst for BofA Global Research discuss whether other data is telling the same, encouraging consumer story and whether retailers generally agree with this more positive depiction of the US consumer. They also address what's ahead-especially as tariff refunds will be less helpful for companies next year and the consumer faces a winter with high gasoline prices and record diesel/heating oil.

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