McDonald’s Corporation, Wal-Mart Stores, Inc. Showing Trouble In The Global Economy

Economy recessionGeorge Leong: Think all is well—or at least OK—with the global economy?

Don’t relax too much, as that doesn’t seem to be the case.

As we all know, spending drives economic growth, whether it’s from consumers, businesses, investments, or governments.

Without one part or another, there would be added pressure on other areas.

The United States recently saw a strong advance second-quarter gross domestic product (GDP) growth reading that pointed to relatively strong economic growth. But there are other signs that suggest otherwise.

Where I like to look is to the major multinationals and the spending on their goods in the global economy.

A pretty decent barometer on the global economy is consumer spending in restaurants, especially with fast foods.

Fast-food heavyweight McDonalds Corporation (NYSE:MCD), for instance, is struggling to find growth in the global economy, and that’s because spending from the other 99% is stalling.

The maker of the Big Mac announced that its comparable sales for its stores in the global economy fell 2.5% in July.

The decline was highlighted by a 3.2% drop in the U.S., along with a massive 7.3% plummet in the Asia/Pacific, Middle East, and Africa (APMEA) regions.

Only Europe edged slightly higher.

In its second quarter (ended June 30, 2014), McDonald’s reported a 1.5% contraction in its comparable sales in the U.S.

The reality is that the numbers clearly suggest a continued struggle to lure customers into stores.

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