Fitch Says U.S. Consumer Spending Falters as Tariffs Stoke Inflation

Fitch Ratings said U.S. consumer spending has slowed sharply, warning that households are feeling the combined drag of a weakening labor market and higher prices stemming from the 145% tariff on Chinese imports that took effect in April. The rating agency noted that inflation remains elevated even as payroll growth cools, eroding disposable income and prompting more middle-income families to pare back purchases. Retail-sector earnings earlier this week suggested the resilience seen in prior quarters may be fading, Fitch added.