Tyler Schipper, an economist and associate professor in the College of Arts and Sciences at the University of St. Thomas, recently spoke with the Minnesota Star Tribune about the U.S. economy. Uncertainty has consumers pulling back on discretionary spending, shrinking the size of the U.S. economy.
From the story:
Americans spent less money last month, shrinking the economy and putting economists on high alert.
According to federal data released Friday morning, consumers spent nearly $30 billion less in May than in April. Personal spending makes up the lion’s share of the U.S. economy, and uncertainty about where economic policy is headed and whether a recession is on the horizon had many consumers pulling back. ...
Retail and food services sales were down in April and May, and companies from General Mills to Winnebago are seeing declines. Cracks are even showing in spending on luxury goods, a sector often insulated by the financial security of its clientele.
“I just have a hard time imagining the consumer that is worried about both the state of the economy and rising prices and doesn’t change their consumption patterns at all based on that worry,” said Tyler Schipper, associate economics professor at the University of St. Thomas in St. Paul. “I think there’s real worry about the path of the economy, rather than just who’s in charge of it right now.”
