"Consumers have taken notice of the many challenges facing the economy; weakening labor conditions, the inflationary impact of tariffs, changes to the tax code, and a reprioritization of fiscal policy are all among the catalysts defining the outlook,"
"Against an uncertain backdrop, retailers posted surprisingly solid sales gains in August, signaling that consumers - despite their many concerns - aren't yet ready to rein in spending,"
"That could change if labor conditions continue to deteriorate in the coming months if slower job creation ultimately transitions to higher layoffs,"
"Q3 economic growth will be stronger than originally thought,"
Retail sales rose 0.6% in August, matching July's upward revision and surpassing economists' 0.3% expectation. Of 13 major retail categories, four declined, including miscellaneous stores (-1%) and furniture (-0.3%). E-commerce increased 2%, clothing retailers 1%, and sporting goods and hobby stores 0.8%. The retail sales control group, excluding volatile categories, grew 0.7%, indicating stronger third-quarter GDP growth. Consumers have benefited from pandemic-era excess savings that have since largely depleted. Key drivers encouraging current spending are fading, and further deterioration in labor conditions or rising layoffs could prompt consumers to cut back.
Read at Axios
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