Concerns about possible consumer spending slowdowns have made their way through the markets, into corporate earnings, and into the reality of investor stock-picking. Profit warnings in the luxury, food, and airline sectors have increased concerns about an economic slowdown, as Reuters reported.

The impact of a consumer spending slowdown began to gain attention a few months ago. The BEA's personal incomes and outlays report for April 2024, released on May 31, 2024, was not pleasing in real terms — that is, after the effects of inflation. Real disposable personal income (DPI) and real personal consumption expenditures (PCE) were down 0.1% in April from March.

Measures improved in May when real DPI grew 0.3% over April, but growth dropped to 0.1% in June. Real PCE was up 0.4% between April and May and then down to 0.2% month-over-month growth in June.