Watching Consumer Spending 8/12/26

Consumer spending, a key driver of US growth, is showing mixed signals. High-income consumers are holding up overall but increasingly trading down to dollar stores, while goods consumption has weakened significantly. - Consumer spending accounts for two-thirds of US economic growth. - Steve Liesman questions whether the drag from gasoline prices has run its course. - Michael Gunther notes the consumer has been resilient, with high-end spenders supporting growth, but also driving dollar store growth as they become more discerning. - Barry Knapp cites a sharp slowdown in goods consumption, challenging the consumer resilience narrative. - The trade-down trend may benefit dollar store operators.