Americans Are Finally Turning Frugal After Splurging Over Summer

  • Government data, retailer warnings indicate consumer pullback
  • Further labor-market cooling may put more pressure on spending

Government data on personal spending showed a cutback in discretionary spending.

Photographer: Matthew Hatcher/Bloomberg
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The long-awaited US economic slowdown has begun.

Signs are piling up — in recent data, in warnings from top retailers such as Walmart Inc. and in anecdotes from local businesses across the country — that after defying expectations all year and splurging over the summer, American households are starting to pull back.