Americans face mounting economic anxiety, curtail spending
Shoppers are cutting back on cars, choosing generic brands, buying in bulk and skipping extras altogether.
CHARLOTTE, N.C. — Despite strong job numbers, American families are pulling back on spending in a big way — and that’s raising red flags for the broader economy.
Consumer spending dropped in May for the first time since January, falling well short of expectations. Shoppers are cutting back on cars, choosing generic brands, buying in bulk and skipping extras altogether.
Major retailers and restaurants report customers are downsizing purchases and avoiding non-essentials. New surveys show discretionary spending is at nearly decade-low levels as families worry about rising prices and policy uncertainty.
Here’s why this matters: consumer spending drives two-thirds of our economy. When people tighten their belts this much, it threatens overall economic growth.
Bottom line? Even with steady paychecks, Americans seem to be playing it safe with their wallets, protecting themselves against an uncertain future.
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