Home Depot claims that price increases are coming and customers postpon more important houses improving while the economy feeds on the economy

Although people can paint again and work on their courses, they do not shoot more important improvements, said CEO of Home Depot, Ted Decker, when calling on Tuesday.

These larger home improvement projects are generally funded by loans, while small projects can be completed with cash payments, who play consumers’ hesitation, said Home Depot’s financial director Richard McPhail.

Consumers do not cancel this kitchen renovation funded by debt or the upgrade of the bathroom, but they “always postpone larger projects due to general uncertainty and higher borrowing costs in the form of interest rates”, declared McPhail to the Wall Street Journal.

Interest rates remained stubbornly high in the aftermath of the Fed battle against inflation. The Fed has maintained interest rates between 4.25% and 4.5% since the end of 2024, although some are planning to feed the comments of President Jerome Powell during the next Jackson Hole economic policy for the signs of an imminent reduction. Meanwhile, economists have increasingly warned against the threat of stagflation, a combination of low growth and high inflation, because the increase in the inflation rate from one year on the other amounted to around 2.7% in July and the threats to employment increased.

However, consumers regularly attack smaller home improvements despite a recent slowdown in the housing market, which has mean that fewer projects are completed before and after sold a house.

Part of the reason why Home Depot persevered is that its customers are richer and made up of 80% owners. This demographic group has been largely firm, benefiting from constant use and a strong increase in the value of properties since 2019, while price uncertainty and inflation have caused other less easy groups to withdraw spending in certain regions.

“Our client is in good health, and we think that has supported their level of commitment in improving the house,” McPhail told CNBC.

The latest report on Home Depot’s earnings includes its busy spring season, where owners and entrepreneurs undertake more projects due to warmer and drier. Its Black Friday of spring sale event has increased by its device, gardening, plumbing and electricity services, associated with smaller projects. However, sales were not also pronounced in kitchen counters and bath categories that are generally associated with larger projects, McPhail told CNBC.

However, the boost in small projects has helped Home Depot to bring back $ 45.28 billion in revenue for the last quarter, an improvement compared to last year during the same period, although just under 45.41 billion analyst dollars. The company’s shares led the highest DOW with an advance of 3.17% Tuesday at noon.