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Americans cut back on spending


Shoppers in downtown Boston in July Associated Press/Photo by Charles Krupa

Americans cut back on spending

The U.S. Commerce Department reports that retail sales fell a seasonal-adjusted 1.1 percent in July from the month before. Wall Street analysts expected a drop of just 0.3 percent.

What accounts for the change? Auto sales fell by almost 4 percent. Spending also dipped at stores that sell clothing, furniture, and sporting goods. But Americans dished out 2 percent more cash at restaurants and bars. The delta variant of the coronavirus may be keeping more people home, but economists also think Americans are shifting their spending from goods to services such as haircuts or vacations, which were not included in Tuesday’s report. And rising prices for everything from food to washing machines may have curbed spending.

Dig deeper: Listen to Nick Eicher and David Bahnsen talk about the delta variant’s effects on the stock market on The World and Everything in It podcast.


Kent Covington

Kent is a reporter and news anchor for WORLD Radio. He spent nearly two decades in Christian and news/talk radio before joining WORLD in 2012. He resides in Atlanta, Ga.

@kentcovington

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OldMike

I’m needing a better pickup (my current one is 25 years old and pretty ratty), but the way used vehicle prices have gone up, I’m not buying. I imagine millions of people are putting off large purchases right now.

news2me

Money doesn't go as far as it did in the past.
Retired people only have what is in the bank where we get almost no interest. So when we spend it it is gone.
I've never had so much money and so little interest. 11 cents interest on $15,000? It's a waste of time to even take the time to register it.
Social Security is a joke. I get paid according to the last time I held a job. The difference in income from back then to today, and with inflation? The gov't doesn't take that into consideration when paying SS. And they take out of that for Medicare. And then you have a deductible they make you pay first. (I don't go to the doctor.)