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American consumers are growing worried about a US debt default | CNN Business

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US consumer sentiment worsened in May as Americans grew concerned about the economy’s direction and a potential default of the US government’s debt, according to a preliminary report from the University of Michigan

Friday. The political impasse over raising the debt ceiling has dragged on for weeks and is inching closer to the day the federal government will not be able to fully meet its financial obligations. Consumers are now taking notice.

6 percentage points, and landing in a realm not seen since December 2020. Michigan’s report showed US household spending was flat in March from the prior month, after limping just 0.1% in February. Retail sales sank 0.8% in March from the prior month, following a 0.5% decline in February. The Commerce Department releases April figures on retail spending next week, which will offer additional clues into how demand is shaping up as credit conditions tighten.

 

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