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US Firms Warn of Consumer Weakness as Income Gap Widens
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US companies are warning of slower demand as income disparity rises, with middle-class consumers cutting discretionary spending across retail and autos.
A Reuters survey revealed major US companies, including retailers and automakers, are trimming year-end forecasts due to widening income inequality. Middle-income households have slowed discretionary spending, pressuring sales across apparel, durable goods, and autos. Executives at Walmart and Ford signaled shifting consumption patterns, with premium brands outperforming mass-market segments. Analysts warn the divergence could dampen Q4 GDP growth if wage growth fails to catch up with inflation-adjusted demand.