Consumers power on, but with a borrowing worry

Big spenders: American consumers are not yet deterred by higher inflation as they continue to spend with gusto, by there are concerns about what lies ahead. — AP

NEW YORK: US economic data and earnings from two retail bellwethers indicated American consumers are spending with plenty of gusto, though cracks in the foundation of the economy are starting to form.

Recent gains in overall retail sales, combined with solid earnings reports from retailers, foreshadow strong second-quarter consumption and suggest consumers aren’t yet deterred by higher inflation. But the spending binge – fuelled more recently by increased credit card use – might not last.