Homeowners nationwide are feeling the pinch of stubborn inflation, resulting in decreased spending on home improvement and household furnishing projects. Given this backdrop, it might be wise to steer clear of struggling home improvement stocks Whirlpool Corporation (WHR), RH (RH), and The Scotts Miracle-Gro Company (SMG).
The Labor Department reported that the Consumer Price Index (CPI) rose 0.4% for the month, putting the annual inflation rate at 6%. As inflation remained elevated, consumers pulled back on their spending last month, and U.S. retail sales fell 0.4%. Spending on furniture and home improvement products was affected significantly, with department stores and furniture/home stores experiencing the largest monthly declines of 4% and 2.5%, respectively.
