Consumer spending is showing signs of slowing, specifically among low-income Americans, which is a concerning sign for the economy, reports The Washington Post.
Spending at U.S. retailers jumped 0.6% last month, more than double economists’ expectations of 0.2%, according to Commerce Department data released earlier this week. But consumers in the top 10% of the income distribution accounted for 49% of total spending in the second quarter, the highest level since Moody’s Analytics began collecting the data in 1989.
“U.S. consumer spending is not just softening overall, it’s doing so in a fragmented way … and that’s a real problem,” Claire Li, a Moody’s vice president of credit strategy, told the Post.
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