Goldman Sachs warns that the economy may face a near-term consumer spending slowdown as the effect of recent U.S. tax refunds fades. The firm says consumer spending growth could fall to around 1%, suggesting a shift from the earlier boost that helped support demand.
The warning centers on the timing of when refund-related stimulus stops and how households respond afterward. Yahoo Finance and Business Insider both report that Goldman links weaker consumer activity to refunds drying up and notes additional pressure on household budgets, including higher prices associated with oil.
While the outlet framing differs—Business Insider emphasizes the risk that a slowdown could hit the wider economy, and Yahoo Finance highlights the broader consumer spending deceleration—the underlying message is consistent: the temporary tailwind from refunds is expected to diminish, and consumers may cut back further.
