From CNBC:

FedEx, among other companies, is facing a slowdown in consumer spending. Consumer budgets are tighter, leading to decreased demand for pricier shipping options and reduced sales outlooks for companies like Target and General Mills. Despite this, companies like Nike and Spirit Airlines are finding ways to cut costs and maintain profit growth without relying on raising prices.
Consumer spending has been slowing down, with retail sales only rising 3.1% during the holiday season, compared to 7.6% the year before. Though some industries, like restaurants and coffee chains, have seen strong sales, apparel, electronics, and jewelry spending has declined. Airlines, automakers, and other sectors are also feeling the effects of this slowdown in spending.
While companies are struggling to maintain profit growth without raising prices, analysts still expect earnings of S&P 500 companies to increase by 6.6% in the first quarter of 2024, with a sales increase of 4.4%. Net margins are also expected to expand to 11.8%. This comes as companies focus on cost-cutting measures and efficiency to improve earnings.



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