U.S. consumer spending slowed significantly in the first half of 2025, decelerating from the robust pace seen in late 2024, according to Fitch Ratings’ latest U.S. Consumer Health Monitor. Increased trade policy uncertainty and equity market volatility weakened consumer sentiment and confidence, leading to lower household spending. A cooling labor market further constrained household income. “As tariff-related cost pass-throughs to goods increase inflationary pressure, the economy could take a stagflationary turn later this year,” said Olu Sonola, Head of U.S. Economic Research. “Higher prices are expected to hit ... (full story)