"US consumers showed signs of fatigue leading up to the longest government shutdown, and their outlook has worsened ever since, sending a note of caution heading into the holiday-shopping season. Retail sales, not adjusted for inflation, rose a tame 0.2% in September after several months of more robust spending, according to data released Tuesday. A more current report from the Conference Board showed consumer sentiment slid to the lowest in seven months, reflecting anxiety about the labor market and the economy."
"Recent corporate earnings show consumers have pulled back on some big-ticket items and are seeking bargains. But retailers like Kohl's Corp., which joined Best Buy Co., Abercrombie & Fitch Co. and Dick's Sporting Goods Inc. in raising its forecast on Tuesday, suggest that despite their anxiety about the economy, shoppers are still willing to spend on brands they recognize and trust. At Best Buy, demand during back-to-school shopping and an October sale was better than analysts forecast."
US consumers showed signs of fatigue before the longest government shutdown, and sentiment has weakened since, tempering holiday-shopping prospects. Retail sales excluding inflation rose only 0.2% in September after several stronger months. Conference Board sentiment fell to a seven-month low amid labor-market and economic anxieties. Corporate results indicate pullbacks on big-ticket purchases and increased bargain-seeking, though several retailers including Kohl's, Best Buy, Abercrombie & Fitch and Dick's raised forecasts, signaling continued spending on trusted brands. Best Buy reported stronger-than-expected back-to-school and October sale demand and expects an especially strong Cyber Monday. Over half of Americans plan to spend at least as much as last year, partly reflecting higher prices and reduced Black Friday deals due to tariffs, and economists note growing caution as sticky prices persist.
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