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By Kristin Myers, Editor-in-Chief

What's Happening Today

With inflation figures coming in lower than expected last week and the job market booming, many people are feeling more optimistic about the strength of the U.S. economy. But will consumer spending keep up? It's another important barometer of the economy's health.

We'll be keeping an eye on shoppers over the next few days. The government's monthly report on retail sales comes out on Wednesday, and major retailers Walmart and Target report their quarterly earnings on Tuesday and Wednesday, respectively.

Previously, Walmart rang the alarm when it lowered expectations for its upcoming earnings, warning investors that it's anticipating lower profits. As shoppers have pulled back spending on larger items like televisions, Walmart said it was trying to shift excess inventory by slashing prices.

The financial health of the retail sector is very important to the U.S. economy, as roughly 70% of the economy is made up of consumer spending. If retail sales continue to rise, it means the economy is likely to continue to grow and remain strong. But with retailers like Walmart warning that shoppers are pulling back on spending because of inflation and fears of a recession, economists are forecasting a big slowdown in retail spending from the month prior, which could heighten worries about the economy.

Home Prices Are Dropping for Some Buyers

Over in the housing market, homebuilder optimism has fallen for the eighth straight month, according to the latest number from the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index. The index dropped to a level of 49 (anything below 50 is considered a negative sign). According to the NAHB, the U.S. is in a "housing recession" as higher interest rates, inflation, and red hot home prices have caused many home buyers to sit on the sidelines.

But this could mean good news if you're an interested homebuyer, as nearly 20% of homebuilders are cutting prices in an attempt to limit the amount of sales cancellations and increase sales.

Join us for a free event on Instagram Live later today at 2 p.m. EDT, when I'll be talking with Nikki Merkerson, founder of PairGap and Urban Leisure, on buying a home as a single woman.

- Kristin

Editors' Picks

Homebuilders Say U.S. is in a 'Housing Recession' as Sentiment Turns Negative (CNBC)

How To Get Equity Out of Your Home (The Balance)

Investors Are Betting Yet Again That Inflation Will Cool (The Wall Street Journal)

Delayed Raises and Renovations: Small Businesses Face New Uncertainties (The Washington Post)

China Shocks With Rate Cut as Data Show 'Alarming' Slowdown (Bloomberg)

China's Economic Slowdown and How It Affects You (The Balance)

The Benefits of Owning Blue-Chip Stocks (The Balance)

Term of the Day

Estate Plan

An estate plan is a plan that aims to preserve your wealth for your beneficiaries while also providing protections and benefits. You don't have to be wealthy to have one, and creating an estate plan can benefit you in a number of ways.

A last will and testament is the most basic element of an estate plan. Other elements include a trust, living will, power of attorney, and/or life insurance.

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Off the Charts

Based on the card-offer data collected by The Balance, credit cards marketed to consumers with bad and fair credit scores (below 670, according to FICO) have an average purchase APR of 24.25%. This is 3.67 percentage points higher than the 20.58% average APR of cards marketed to people with what FICO considers good or excellent credit.

Later today at 2 p.m. EDT, join us on Instagram Live for a discussion with The Balance Editor-in-Chief Kristin Myers and Nikki Merkerson, Founder of PairGap and Urban Leisure, on buying a home as a single woman. Follow us on Instagram to get updates on The Balance's live events this month!