Consumer spending in the USA decelected significantly in the first half of 2025, decreasing in relation to the robust rhythm observed in late 2024, according to monitoring Fitch Ratings.
According to the risk classification agency, the growing uncertainty in commercial policy and stock market volatility weakened consumer’s feeling and confidence, leading to a reduction in family spending.
“As cost -related rate transfers to goods increase inflationary pressure, the economy can take a stagflactionary course later this year,” says Olu Sonola, the US Economic Chief of Economic Research at Fitch.
“Higher prices are expected to first reach the categories of goods, probably weakening consumer spending before the holiday season.”
Consumer spending growth fell to 0.5% in the first quarter of 2025 and 1.4% in the second quarter, below 3.7% in the third quarter of 2024 and 4.0% in the fourth quarter of last year.
Fitch expects the growth of consumer spending to reach an average of 1.8% in 2025-2026, a significant drop from 2.8% in 2024.
