US consumption has remained remarkably strong despite higher fuel prices sparked by the war in the Middle East, though signs of strain have started to emerge.
Beef sales fell in the 13 weeks leading up to mid-July, with consumers cutting back on eating out or opting for cheaper proteins, Bloomberg reported. Goldman Sachs analysts expect consumer spending to grow just 1-1.5% in the second half of the year. Consumer sentiment fell in August for the first time in months, data showed, as the intensifying US-Iran conflict stoked cost-of-living concerns for Americans, spelling trouble for the Trump administration ahead of November’s midterms.
“The reality is that inflation is just the most regressive tax that exists,” an expert told the Financial Times.
