Happy shoppers are one way to measure the effect of President Donald Trump’s tax overhaul apparently.
The tax cuts were envisioned to trigger growth in the economy by allowing consumers to pocket more money — and spend it. This is good news for retailers who’ve seen sales slump for three quarters in a row — the largest running decline since 2015, according to Bloomberg. Now analysts are predicting that the decline in retail sales will end with 2018’s first quarter sales numbers; their median estimates predict sales will rise 0.4 percent.
“The economy continues to create jobs in significant numbers and tax cuts are putting more money in households’ pockets,” ING chief international economist James Knightley wrote to Bloomberg. “We suspect the cash flow story will win out for now, implying a positive outlook for consumer spending.” [Bloomberg] — Erin Hudson