NEW YORK—U.S. consumers cut back spending on their credit cards in June, a new report reveals.
Barclays economists said their internal credit-card numbers suggest that retail sales may have dropped 0.4% last month, which would be a second straight decline.
“Recent data suggest that the U.S. consumer might be starting to pull back on spending,” they wrote in a research note, Bloomberg said. That has “led us to question if a sharper slowdown in consumer spending is around the corner.”
Meanwhile, Bank of America said its own card data points to a 0.3% gain in spending per household for the month. BofA economists noted gasoline prices, which hit a record high in June and are forcing consumers to cut back on other spending.
“The card data suggest there is a risk that real (inflation-adjusted) consumer spending declined for the second consecutive month,” they wrote in a report.