Us Consumers Cut Spending Sharply Amid Economic Uncertainty
U.S. consumers cut back sharply on spending last month, the most since February 2021, even as inflation declined, though stiff tariffs threatened by the White House could disrupt that progress. Americans are becoming more cautious in their spending due to rising economic uncertainty and the potential impact of tariffs on prices. The decline in spending may be a sign that consumers are preparing for potential economic downturns.
- This increase in caution among consumers could have far-reaching implications for businesses, as reduced demand can lead to lower profits and revenue.
- How will policymakers respond to concerns about the potential negative effects of tariffs on consumer spending and inflation?