In August, the central bank said tariffs are showing up in household budgets in a pretty simple way: People are paying more and buying less.
Spending on goods affected by tariffs fell by roughly three times as much as their prices rose, largely because consumers cut back on nonessential purchases. Lower-income households were hit hardest by higher prices, while middle-income households did more of the cutting back on discretionary spending. Across income levels, worried consumers were also more likely to trade down to cheaper products when buying necessities.
Best Labor Day Sales
Labor Day weekend is traditionally among the best times to buy a mattress or other bedding. Labor Day discounts can run about 5 percent or 10 percent better than ordinary promotional prices, according to Consumer Reports.
Also, the publication said major appliances are routinely marked down in Labor Day weekend sales, and it’s a good time to pick up gardening tools, patio furniture and grills.
Apparel stores are offering big markdowns in end-of-season clearance sales on shorts, swimwear and other warm-weather clothing. Consumers may also find some back-to-school deals on fall apparel.