KissMy
Free Breast Exam
Consumer confidence falls sharply
Walmart misses Q4 sales forecast, expects tough Q1
Consumer Confidence Index fell almost 11 points to 46 in February, down from a revised 56.5 in January. Analysts were expecting only a slight decrease to 55.
The increasing pessimism is a big blow to hopes that consumer spending will power an economic recovery. Economists watch the confidence numbers closely because consumer spending accounts for about 70 percent of U.S. economic activity.
The February reading is a long way from what's considered healthy: A reading above 90 means the economy is on solid footing. Above 100 signals strong growth.
Walmart misses Q4 sales forecast, expects tough Q1
Walmart has reported lower-than-forecast sales figures for its fiscal fourth quarter, and said it expects its US outlets to have a challenging first quarter. For the quarter ending 31 January, revenue rose by a lower-than-expected 4.5% to $113.7bn, even as net profit rose by 22% to $46.3bn ($1.21 a share). Excluding a tax benefit and a restructuring charge, profit amounted to $1.17 a share.
However, US same-store sales were down 1.6% on the year, beating the companys own forecast of sales not declining by more than 1%. Walmart said sales were affected after it cut prices to attract shoppers living from paycheck to paycheck.