Retail purchases have fallen in three of the last four months and even spending on services, which had risen sharply over the past year, was flat in December. The Wall Street Journal reports that the fluctuations consumer spending The numbers mark a sharp reversal from spending during much of the pandemic, when consumer trends helped the country avoid a prolonged slump.
Now the forces that have helped keep spending high while inflation remains high are fading.
The percentage of monthly income that Americans set aside for savings is falling while credit card interest rates are rising. Recent layoff trends and inflation that has skyrocketed over the past year have caused concern for many Americans.
Carriers are seeing the impact as the number of large and bulky shipments decreases and retail customers continue to destock and push back replenishment.
