US Spending Power: Slowdown or Caution?

VTV.vn - In the US, consumer spending, one of the main drivers of the country's economy, is showing signs of cooling down.

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The fourth quarter - the last quarter of the year - is the time when the consumer goods industry accelerates with holidays, big shopping programs, and deep discounts. However, the demand and spending power of the American people showed signs of slowing down right from the beginning of the quarter.

Consumer spending has been falling in recent weeks, with most of the 12 regional banks that make up the Fed reporting higher inflation, rising input costs due to tariffs, and uncertain economic conditions, according to the Beige Book report by MarketWatch.

Reuters also cited comments from representatives of the Federal Reserve Bank of Atlanta. Accordingly, some retailers are not very confident about the upcoming holiday business opportunities; others predict so-so sales and note that tariffs will soon increase prices, causing further demand declines.

In fact, transaction data from major banks also reflects the trend of people tightening their spending. Even banks are not very concerned about the risk of overdue spending or bad debt because people are very cautious when shopping with their wallets.

Bloomberg, which tracks spending data such as credit card payments and same-store sales, found that demand in September was down significantly from the previous three months, falling on essential items such as furniture, electronics and appliances.

Spending growth among low-income households remains weaker than that among middle- and high-income groups.

Banks have a different perspective: lower spending means more prudent spending. Reuters has recorded the opinions of the largest banks on Wall Street. According to Bank of America, this bank can keep the risk provisions and is not worried about bad debts and real estate.

Wells Fargo, meanwhile, highlighted strong credit quality across the board. Customer spending was steady on credit and debit cards.

It can be seen that American consumer spending at this time is not necessarily declining in a negative direction but is entering a cautious phase. People continue to spend and shop more selectively, prioritize saving and rebalance their budgets to wait for the big discount shopping season at the end of the year.

Source: https://vtv.vn/suc-chi-tieu-tai-my-giam-toc-hay-than-trong-100251022091036206.htm