US shoppers tighten their belts as economic outlook concerns mount

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American shoppers retreat from spending and feeling sliding, threatening President Donald Trump’s tariff and market fluctuations to undermine one of the main engines of the world’s largest economy.

Many retailers reported solid sales at the end of last year, but they warned of slower growth in 2025, and industry data shows that their expectations are already operating.

The stores fell to the United States by 4.3 percent year on an annual basis in early March, according to the retail trade, a consultant – extending to declines that started at the beginning of the year. Placer.ai, which collects signals from mobile devices, has recorded lower visits to Big-Box stores including Walmart, Target and Best Buy in recent weeks.

On Friday, the Consumer Passion Index at the University of Michigan recorded the third monthly decrease in a row and the lowest reading since November 2022.

Trump refused to exclude the recession, while the recent stock market stumbled to mobilize the investment portfolios of the wealthy Americans who pay American consumption.

“The consumer is exposed to many different elements,” said Marshall Cohen, chief retailer at Circana, who collects retail data. “It is easier for the consumer to back down and say:” I will ride this outside and wait and see what is happening. ”

The US Federal Reserve is expected to maintain interest rates at its meeting this week, and the President of the Federal Reserve, Jay Powell, recently underestimated concerns about growth, saying that the US Central Bank “does not need to be in a hurry” to reduce prices.

But investors are increasingly concerned that Trump’s irregular policy, which features a series of sudden rotation, disrupts companies and slowly growing. The standard stock index in Wall Street decreased in the correction area this week, before returning back.

Consumer spending was a major engine of the US economic recovery from the Covid-19s, which overwhelmed Europe and other large economies.

But family budgets extended in the subsequent period of high inflation. In response, consumers have reduced spending, and lower sales volumes for commodity -packed companies. Consumer with low income hair with the greatest stress.

Data from Circhana showed that the sales of public estimated goods decreased by 3 percent in the week ending on March 8, compared to last year, and continued in a series of annual decrease in February.

Fast food restaurants in the United States decreased by 2.8 percent in February, according to revenue management solutions, as visits at breakfast time decreased by double numbers. “It is the easiest meal at home or skipped completely,” said consultations.

Four US airlines this week warned of the slowdown in demand, partly due to the reducing by entertainment travelers.

TARGET this month recorded a decrease in February sales and warned of profit pressure in this quarter in part due to “definition uncertainty”.

Some consumers also boycott the retail seller, who is based in the semen, after it has retracted the obligations of companies’ diversity. The targeted executive officials refused to confirm whether the boycott has an effect.

Analysts said economic anxiety had a greater impact of boycott on retail sales, which is scheduled to issue official government data on Monday.

Lauren Hobart, CEO of Sports Commodities, told analysts this week that he was “not at all” that consumers were weaker. However, its chain predicts the growth of the same store sales from 1 to 3 percent this year, and slowed down from a 5.2 percent increase in 2024.

“Our guidelines reflect just the fact that there is a lot of uncertainty in the world today in the geopolitical environment, and the total economic environment. Hobart said:” We are just cautiously appropriate. “

While inflation weed over American consumers for several months, their anxiety has not always been translated into low spending. Sales of nearly one dollar during the holiday shopping season exceeded expectations.

“Consumers say they intend to retreat,” Tom Kelry, a major partner in McKinsey at the New York Industrial Conference. “But what we also saw over the past year is that they have not always followed this intention with work.”