Home Depot's business is stuck. That's a bad sign for the economy

By Nathaniel Meyersohn, CNN

New York (CNN) — Consumers are cutting back on remodeling projects and big home upgrades. That’s hurting Home Depot’s business.

Home Depot, a bellwether for US consumers and the housing market, said its sales at US stores open for at least one year rose only 0.2% last quarter. It also cut its profit forecast for the year.

Home Depot attributed the slowdown to cautious consumers and a frozen housing market. Mortgage rates have been stuck between 6% and 7%, leading fewer people to buy and sell their homes.

“We believe that consumer uncertainty and continued pressure in housing are disproportionately impacting home improvement demand,” Home Depot CEO Ted Decker said in a statement.

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