Barclays: US consumer spending to continue to decelerate, not improve much into year end

Data on Tuesday from the US showed a solid jump for consumer sentiment:

• US consumer confidence for May 98.0 versus 87.0 estimate.

But will that translate into spending? Barclays are wary, outlining in a note:

• policy-related headwinds look set to gradually intensify in the coming months
• we expect consumer spending to continue to decelerate in the current quarter before posting lacklustre increases through year-end
• The note adds that while risks are skewing toward more supportive fiscal policy, effects on income and spending are unlikely to materialize until 2026.

This article was written by Eamonn Sheridan at www.forexlive.com.