US Consumer spending gradually loses momentum

According to figures released on Friday, US retail sales in March decreased more than was predicted. Analysts claim that the amount of spending is still high, proving that consumers’ underlying resilience has not changed.

After an extremely good start to the year, retail sales are declining once more. The amount of retail spending is still about 2% higher than it was in December, even with some payback following an extraordinarily robust start to the year. More blatantly, despite the trend appearing to be turning downward, consumers continue to spend at a high rate.

The March retail sales figures show a steady reverse following a startlingly large increase in January sales. The preference of consumers is continuing to change away from products, especially those with high prices or those frequently require financing. Consumers’ inclination to take on credit card debt or buy a new car or appliance may be starting to feel the effects of the increase in borrowing costs over the past year.

For a dismal second quarter of expenditure, retail positions suffered from lost momentum and a delayed first-quarter finish. Analysts predict that consumer spending will gradually slow down during the second quarter before turning negative later this year.