Consumer Spending Slows Amid Labor Market Cooling, Tariff Uncertainty: Fitch

U.S. consumer spending slowed sharply in the first half of 2025 as a cooling labor market, higher tariffs, and volatile equity markets weighed on household confidence, according to a new Fitch Ratings report and government data.

The pullback raises concerns about whether the resilience of American shoppers—who account for roughly two-thirds of gross domestic product—can continue into the year-end holiday season.