“Concerns about the negative impact of tariffs on the domestic economy were spontaneously mentioned by nearly one-third of all consumers in the past three months, up from one-in-five in the prior four months,” said Curtin.

Retail Sales Rise At Slower Pace

Meanwhile, retail sales posted their smallest gain in the past six months as consumers scaled back on automobile and clothing purchases during the month of August. The Commerce Department reported today that retail sales advanced 0.1% last month, but at the smallest increment since February–however, data for July was revised to show a 0.2% increase over the initial reading of 0.5%.

A Reuters poll of economists forecasted that retail sales would rise 0.4% during the month of August. However, retail sales were higher by 6.6% compared to a year ago.

“The trend in retail spending is still solid, fueled by job growth and rising wages,” said Ben Ayers, senior economist at Nationwide. “We expect retail sales to pick up again in coming months to continue a strong 2018 for consumer activity.”

For more trends in fixed income, visit the Rising Rates Channel.