Is America’s economy heading for a consumer crunch?

But are the predictions at last coming true? Monthly consumer-spending growth fell from 0.7% in March to just 0.2% in April. Overall spending shrank in real terms. Retail sales have weakened, with brands from McDonald’s, a burger purveyor, to 3M, a maker of sticky tape, warning that customers are closing their wallets. The recent spending data, released on May 31st, helped wipe almost a percentage point off the prediction of annual gdp growth from the Atlanta branch of the Federal Reserve, cutting its “nowcast” for the second quarter of the year to 1.8%.