Home Depot under pressure: Economic uncertainty and high interest rates knock sales

US home goods giant, Home Depot, is under pressure from economic challenges that are having a significant impact on consumer behaviour. As interest rates have risen and concerns about the future of the economy have grown, consumers have become increasingly reluctant to invest in large-scale home renovation projects. This trend has resulted in a decline in sales, forcing the company to revise its forecasts for this year.

Home Depot $HD, which is considered something of an indicator of consumer spending and the state of the real estate market, lowered its sales estimates for this year. The company expects sales at stores that have been open at least 12 months to fall between 3% and 4% compared to last year. That's a more significant drop from an earlier estimate that called for a 1% decline. This decline is the result of declining demand for home improvement projects, driven by higher interest rates and growing consumer concerns about economic uncertainty.

Large projects such as flooring,…