In May, US consumer spending experienced an unexpected decline, marking the first significant drop of the year, as Americans tightened their budgets amid ongoing trade tensions and tariff-related price increases. Personal income growth also slowed, with reports indicating a decrease of 0.4% in personal income and a 0.1% drop in spending. Retail sales figures disappointed, reflecting consumer caution and a shift toward necessity-based purchases rather than discretionary spending. Analysts suggest that the lingering uncertainty is causing shoppers to re-evaluate their spending habits, with many indicating they are feeling the effects of rising prices largely attributed to tariffs. As a result, the retail sector is facing pressures that may dictate economic trends in the upcoming months.