Retailers Are Seeing U.S. Consumers Rethinking their Spending

U.S. consumers haven't stopped spending money since the U.S.-Israel/Iran war drove up fuel prices, but many shoppers are reassessing what they buy and where, according to company executives and retail analysts.

The behavior changes observed so far are subtle, such as altered routines for buying gasoline and fewer visits to clothing and furniture stores. They also are uneven across the population. During recent earnings calls with analysts, executives from American mainstays like McDonald's, Dollar General and Walmart cited overall shopper resilience as well as noticeable cutbacks by lower-income customers.

But the new signs of strain cited by major retailers as generous income tax refund helped shore up their sales make some economists and analysts think they will see a wider retrenchment when the refunds are gone and consumers face the cumulative impact of more expensive gas and higher prices for food, clothing, insurance and other goods and services.

Please select this link to read the complete article from The Associated Press.