Signs of a consumer slowdown could be good news for the Fed, which is poised to hold interest rates steady for the first time in over a year.
“We are seeing a broadening economic slowdown,” said Lydia Boussour, senior economist at EY-Parthenon. “It started with the housing sector, then manufacturing. And now we’re seeing service activity stalling.”
Madison Sasser, 24, who until last month worked at Outback Steakhouse in Tampa, is now a server at another national restaurant chain. Most evenings, she says she leaves her five-hour shift with less than $100 in tips, down from $130 a few months ago. “There’s some sticker shock, but people are still trying to make it work,” owner Christina Schlegel said. “They’re saying, ‘Instead of a five-star hotel, maybe we can do a four-star boutique.’ But they’re still spending.”
adjusting hiring plans and investments accordingly. Leisure and hospitality companies posted nearly 100,000 fewer jobs in April than they did in March, even as job openings ticked up across the economy.Geoffrey Jaime, an Airbnb host in California, says demand for his six apartments in the San Bernardino Mountains has fallen sharply, as fewer travelers venture to the area. He’s lowered prices by 22 percent, from about $500 a week to $388, and has started advertising on other sites.
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