Americans are spending less as they brace for new tariffs
Americans are tapping the brakes on spending - pulling back on dining out, hotel stays and other expenses, as they boost their savings ahead of new tariffs and continued economic uncertainty.
Consumers are increasingly anxious about the economy, and they’re curbing spending habits accordingly, data released Friday shows. Consumer spending inched up by 0.1 percent in February, after adjusting for inflation, following a 0.6 percent drop the month before, according to government figures. Meanwhile, the personal savings rate - or how much of their incomes people set aside - rose to 4.6 percent.
A separate survey released by the University of Michigan, meanwhile, showed that Americans’ views on the economy fell for a third straight month, to the lowest level since 2022, as households and businesses prepare for a wave of higher prices once new tariffs go into effect this week.
“Consumers are increasingly apprehensive about spending,” said Lydia Boussour, a senior economist at EY-Parthenon. “We are seeing clear signs that people are being more careful - they’re reluctant to spend on nonessential expenses. They’re worried about inflation and have preemptive anxiety around tariffs.”
https://finance.yahoo.com/news/americans-spending-less-brace-tariffs-120504861.html
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