The consumers in America have kept the economy of USA progressing towards another year of expansion and this is going to be its 11th year of expansion however the locomotives of the economy may soon run out of gas.
After there were big increases in the levels of spending in the last year during spring and summer, the households now are evidently cutting back. The sales at the retailers in United States have seen a disappointment as the there was a rise by just 0.2%.
The retail sales growth during the last one year have further escalated the concerns as they have slowed to a pace that is modest at 3.4% from a high at 6.5% which was the highest it had been for seven years which it was just one and a half years ago.
The consumers are spending enough still and are keeping the economy on a growth pattern. There is further chance that this spending is going to pick up in the month of December as there is a holiday season which is going to reach its peak in this season.
The trade war of President Trump has not left the households being unaffected as every negative headline has made a dent in the confidence of the consumers and also seems to have depressed the levels of spending.
Economists feel that without a surge in the month of December, it does not seem as if the consumer spending in the fourth quarter is going to grow at a level near 2.9% which had been posted in the third quarter.
This has also been seen as the primary reason why trade tensions were eased by the president considering the elections in the next year.