Consumer Spending Trends Remain Resilient Amid K-Shaped Economy Fears

Goldman Sachs analysts Scott Feiler and Eric Mihelc report that consumer trends remain resilient despite concerns about a K-shaped economy. January spending growth is strong, with companies such as Costco and Boot Barn reporting positive sales. Consumer sentiment has also improved, with the University of Michigan consumer sentiment index rising to a six-month high. The analysts note that consumption trends are not the cause of the current market volatility, which is attributed to factors such as positioning, technicals, and capex surprises.