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Tax refund expectations influence US consumer spending outlook
Tax refund expectations may shape near term US consumer spending.
Expectations around tax refunds are shaping consumer spending behaviour in the United States. Analysts said larger refunds could support short term consumption, especially among lower and middle income households. However, elevated inflation and high borrowing costs continue to limit discretionary spending. Banks and retailers are closely tracking refund trends as a signal for near term retail demand, credit usage, and overall economic momentum.