Fitch Ratings reports a sharp slowdown in U.S. consumer spending due to new tariffs and a softer labor market, predicting weaker household demand in the second half of 2025. The agency lowered sector outlooks for U.S. retail and consumer products to “Deteriorating” as rising inflation and a cooling labor market constrain discretionary spending. Walmart, Target, and Home Depot are among the relevant companies facing potential challenges from higher prices and reduced consumer spending. This is a developing story with updates expected as more details emerge.

Read more at Quiver Quantitative: U.S. Consumer Spending to Slow Sharply as Tariff-Driven Inflation Bites