Part of the reason might also be the rise in mortgage
rates. People bought when rates were low on adjustable loans. Now that they are going up, their budgets can't accomidate the increase.
For sure I'm putting that diamond bracelet on hold!
WASHINGTON (Reuters) - U.S. consumer spending took a much deeper dive than expected in June as shoppers cut back on purchases of expensive items like autos amid slowing income growth, a government report showed on Tuesday.
Personal spending dropped 0.7 percent in June after climbing 1 percent in May, the Commerce Department said. Adjusted for inflation, spending plunged 0.9 percent.