U.S. Shoppers to Slow Spending for Rest of 2012, Citigroup Says

U.S. consumer spending will slow in the second half of the year as shoppers reduce purchases amid a weak economic recovery, a volatile stock market and uncertainty over the presidential election, Citigroup Inc. said.

That will make the important back-to-school shopping season “challenging” for retailers, Citigroup said in a report. In a survey commissioned by the New York-based banking company, 81 percent of respondents planned to spend the same or less in the second half than a year ago. About two-thirds expected the economy to deteriorate or not improve.