It’s becoming tougher for Americans to continue their spending spree. Years of elevated inflation and high interest rates are wearing out the US consumer. Savings accumulated during the Covid-19 pandemic are drying up, and borrowers continue to rack up debt. Retailers say shoppers are changing their purchasing behavior in response to rising prices. US consumers power economic growth, but they’re facing challenges from all directions. Sales at US retailers and restaurants were unexpectedly flat in April, and consumer spending was weaker than initially reported in the first quarter. Economists are watching for a turning point amid these economic hurdles.
