American consumers are pulling back — and that is the clearest sign yet that the rip-roaring economy of the past couple of years may be giving way to something else.
pulling back — and that is the clearest sign yet that the rip-roaring economy of the past couple of years may be giving way toFor all of the economic ups and downs within the past year, the consumer has largely been a consistent bright spot. But higher interest rates, persistent inflation and shrinking excess savings may finally be beginning to take hold and forcing consumers to cut back.
If sustained, the implications for the economy are huge: Consumer spending accounts for about two-thirds of economic activity. And there are risks ahead, including a possible pullback in lending that would crunch consumers further.Friday morning, which followed a 0.2% drop in February. Even excluding gas stations affected by lower fuel prices, sales were down 0.6%.
Declines included categories like general merchandise stores , electronics and appliances stores and building materials and garden equipment retailers . In a marked deceleration, sales were up 7.6% on a year-over-year basis at the start of 2023, but that has now fallen to 2.9% — below the rate of inflation during that span, meaning that in real terms, spending has declined."While job and income gains remain strong, the cracks in the consumer sector are widening and a negative shift in hiring activity could be the final blow to place the economy in a recession," Ben Ayers, a senior economist at Nationwide, wrote in a note.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
School massacres are no longer just an American problemBrazil, which has suffered 11 attacks in the past eight months, worries that the carnage is only beginning.
Weiterlesen »
Were Black Children Used as Alligator Bait in the American South?The 100-year-old newspaper articles cited as evidence for the veracity of this claim were more likely cashing in on racist stereotypes than observing journalistic due diligence.
Weiterlesen »
License requirement for dog trainers stymied by intense lobbying from American Kennel ClubA provision in a state bill to regulate dog trainers, which would have mandated dog trainers obtain a license, was stripped from the bill under intense lobbying from the American Kennel Club.
Weiterlesen »
American Airlines profit forecast disappoints; shares tumbleAmerican Airlines Group Inc on Wednesday forecast first-quarter profit below market expectations, joining rival United Airlines in signaling a hit from persistently high labor and fuel costs.
Weiterlesen »
Airline stocks shares fall on American’s so-so 1Q outlookAirline stocks tumbled Wednesday after American Airlines issued a lackluster outlook that appeared to amplify fears that travel demand, which has surged for the past year, could finally be slowing in the face of inflation and economic uncertainty.
Weiterlesen »
How Netflix’s ‘Beef’ nailed the Korean American evangelical experienceViewers have strong feelings about the show's authentic depiction of the sense of belonging, social pressures and uncomfortable dynamics inextricably linked to the church.
Weiterlesen »