"The retail sales figures, which aren't adjusted for inflation, suggest that Americans pulled back on spending in September as many households struggled with high prices for groceries, rent, and many imported goods hit by tariffs. The retail sales report covers about one-third of consumer spending, with the rest going to services such as travel, haircuts, and entertainment. Still, higher spending should lift the economy's growth to a solid 3% annual rate in the July-September quarter, economists forecast,"
"Consumer spending could slow in the final three months of the year, economists warned. The government shutdown, weak hiring, and elevated inflation will likely cause more Americans to cut back. "The moribund labor market and ongoing drag on real incomes from tariff-induced price increases suggest that this slowdown is likely to be maintained," Oliver Allen, an economist at Panthenon Macroeconomics, a consulting firm, said."
U.S. retail and restaurant sales increased 0.2% in September as consumers moderated spending after strong summer gains of 0.6% in July and August and 1% in June. The data release was delayed more than a month by the government shutdown and figures are not adjusted for inflation. Many households faced high prices for groceries, rent, and tariff-affected imports, prompting pullback. Retail sales account for about one-third of consumer spending; services make up the rest. Gas station and grocery prices drove much of the increase. Restaurants and bars rose 0.7%, while clothing, electronics, and sporting goods fell. Weak hiring and elevated inflation could slow spending further.
Read at Fast Company
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