U.S. consumer spending slowed last month. Why’s that? Consumer spending is a crucial component of the U.S. economy, accounting for around 70% of the country's gross domestic product (GDP). However, recent data shows that consumer spending slowed down in the month of August, raising concerns about the state of the economy. According to the Commerce Department, consumer spending rose by just 0.2% in August, compared to a 0.4% increase in July. This is the smallest gain in spending since February of this year. The slowdown in spending was mainly due to a decline in purchases of durable goods, such as cars and appliances. So, why did consumer spending slow down last month? There are several factors that could have contributed to this trend. Firstly, the ongoing trade war between the U.S. and China has created uncertainty and volatility in the markets, which could be affecting consumer confidence. The trade war has led to higher tariffs on goods imported from China, which has resulted in higher prices for consumers. This could be causing some consumers to hold back on spending. Secondly, the recent volatility in the stock market could also be affecting consumer spending. The stock market has been experiencing a lot of ups and downs in recent months, which could be making consumers more cautious about their spending. Thirdly, the recent hurricanes that hit the U.S. could also be affecting consumer spending. Hurricane Dorian, which hit the Bahamas and the southeastern U.S. in early September, could have disrupted consumer spending in the affected areas. Lastly, the recent slowdown in job growth could also be affecting consumer spending. The U.S. economy added just 130,000 jobs in August, which was below expectations. This could be making consumers more cautious about their spending, as they may be worried about their job security. In conclusion, there are several factors that could be contributing to the recent slowdown in consumer spending in the U.S. While it is too early to say whether this trend will continue, it is important for policymakers to monitor the situation closely and take appropriate measures to support the economy if necessary.