Danger Park City Main Street…Danger

U.S. consumer sentiment hit its lowest in a year in early September as households expected slower growth abroad to hit the U.S. economy, a survey released by the University of Michigan showed. Consumers’ expectations for current and future personal finances also took a knock. Even though unemployment levels are decreasing and gas prices are falling, stagnant wage growth is forcing middle- and low-income consumers to spend prudently, Paransky said.

Dollars saved at the pump are being directed to personal savings or on non-retail activities, such as holidays, instead of discretionary items.

Higher income consumers are also expected to rein in spending after seeing their stock portfolios oscillate, due to the turmoil in the global stock markets following the devaluation of the Chinese yuan and the Federal Reserve’s decision to hold off raising interest rates.