The U.S. Retail sector is poised to go from bad to worse this summer. When student loan payments resume this summer, struggling U.S. consumers will have even more reason to cut back on their discretionary spending.
“You have a lot of households where the husband and the wife are both carrying student debt,” explains Brian McGough in this clip from The Macro Show. “Ultimately, you get a 1.7% rate of consumer spending hit, which is going to be very, very damaging.”
If you think recent college graduates will be the only demographic affected, think again. “People 25 and under only hold 6.4% of student debt,” McGough adds. “35-49 year-olds hold the biggest slug at 39%, and then 50+ year-olds hold a quarter of it. So, who does this impact? It impacts everybody.” To see which retailers McGough believes are most at risk, subscribe to The Macro Show and Retail Pro.
