Plunging U.S. home sales are having a ripple effect on consumer spending, as fewer Americans are moving into houses that need to be outfitted with furniture and appliances.
The effects are visible across the economy. Spending on furniture and related items fell nearly 12% from the year-earlier period in October.
Home goods sellers including Z Gallerie and Serta Simmons Bedding have filed for bankruptcy this year, citing weaker demand, and more are probably coming.
Williams-Sonoma Inc.’s chief executive said last month that consumers are hesitant to spend on expensive furniture.
Home Depot Inc., the hardware and appliance store, said its revenue will likely drop this fiscal year.
The Federal Reserve last year started a rate hiking campaign to tame inflation, and slowing the housing market is a key way to make that happen.
In October, mortgage rates reached their highest level since 2000, helping to make housing the least affordable