New data signals tariff turmoil's effect on consumer spending
New data signals tariff turmoil's effect on consumer spending

New economic data released Tuesday suggests the turmoil surrounding tariffs is affecting U.S. consumer spending. Retail sales in the U.S. dropped 0.9% in May, a sharp dip from the 0.1% decline the month before. Kelly O’Grady takes a look at the numbers.
Read the full article on CBS Politics
Truth Analysis
Analysis Summary:
The article is mostly accurate, reporting on a decline in retail sales and linking it to tariff turmoil. The claim about the decline in retail sales is supported by multiple sources indicating economic strain due to tariffs. However, the article presents a narrative that primarily focuses on the negative impacts of tariffs, potentially omitting other contributing factors.
Detailed Analysis:
- Claim:** Retail sales in the U.S. dropped 0.9% in May.
- Verification Source #1: Supports the idea of declining consumer spending.
- Verification Source #2: Suggests consumers were importing goods before tariffs took effect, which could lead to a later drop in sales.
- Verification Source #4: Mentions tariffs impacting consumer spending.
- Verification Source #5: Mentions the impact of tariffs on consumer prices and spending.
- Claim:** This drop is a sharp dip from the 0.1% decline the month before.
- This claim is not directly verified by the provided sources, but the general trend of economic strain due to tariffs is supported.
- Claim:** The turmoil surrounding tariffs is affecting U.S. consumer spending.
- Verification Source #2: Directly links tariffs to consumer behavior.
- Verification Source #4: States that tariffs are impacting consumer spending.
- Verification Source #5: Mentions the impact of tariffs on consumer prices and spending.
Supporting Evidence/Contradictions:
- Verification Source #1: "Consumer spending also declined." This supports the claim that consumer spending is down.
- Verification Source #2: "Tariffs have already shown up in the economic data in one way: Consumers and businesses have raced to import goods before new duties take effect..." This suggests that tariffs are influencing consumer behavior, although it doesn't directly confirm a drop in retail sales.
- Verification Source #4: "...consumer spending by as much as two percentage points." This supports the claim that tariffs are negatively impacting consumer spending.
- Verification Source #5: "...impact of the tariffs on consumer prices and spending..." This supports the claim that tariffs are impacting consumer spending.
- There are no direct contradictions in the provided sources. However, the sources do not provide the specific retail sales numbers mentioned in the article.