US consumers showed signs of fatigue leading up to the longest government shutdown, and their outlook has worsened ever since, sending a note of caution heading into the holiday-shopping season.
Retail sales, not adjusted for inflation, rose a tame 0.2% in September after several months of more robust spending, according to data released Tuesday. A more current report from the Conference Board showed consumer sentiment slid to the lowest in seven months, reflecting anxiety about the labor market and the economy.
“It’s a picture of consumption — which has been a real engine of growth over the last few years — slowing quite a lot into the end of this year,” said Oliver Allen, senior US economist at Pantheon Macroeconomics.
Recent corporate earnings show consumers have pulled back on some

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