discretionary spending

Consumer sentiment tumbled in early August, according to the University of Michigan survey. July retail sales were down more than half a percent from June, and AAA reports the nationwide average gas price neared a record high for August.

The preliminary snapshot released earlier in the month was dismal, comparable to levels not seen since the huge post-COVID inflation spike.

The danger is that inflation will overtake wage growth, which would mean Americans overall would have less money for discretionary spending.

Some sectors are more exposed than others as the war drives up energy costs and squeezes consumer spending.

It’s slowing fastest for workers in low-wage and entry-level jobs. 

Ray Lujan, a lifelong resident of Las Vegas, sees Trump administration policy playing a big part in the city’s droopy tourism numbers for 2025.

Right now, there are signs of a tourism and spending slump that could spell trouble for the rest of the U.S. economy.

These companies are trying to predict when the resilient American consumer will break under rising prices and stop splurging on things like travel and takeout. 

Consumers spent 1.5% less than they did in January. Is this a worrying sign for the economy?

And economists wonder how long those who are better-off can even keep it up.