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Story perspectives

US Retail Spending Stalls Amid Economic Uncertainty

5/17/2025

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Story summary
  • US retail spending increased only 0.1% in April, a significant drop from 1.7% in March, signaling reduced consumer demand.
  • Motor vehicle sales fell by 0.1%, while spending at bars and restaurants rose by 1.2%.
  • A KPMG survey found that 68% of consumers are avoiding new credit, delaying major purchases amid economic uncertainty.
  • Consumers are shifting spending habits, showing increased interest in generative AI and alternative services.