Markets· August 17, 2026 at 12:55 p.m.
Goldman Sachs Warns of Consumer Spending Slowdown as Tax Refund Boost Fades
Key takeaways
- Goldman Sachs expects sluggish consumer spending growth ahead
- Consumer spending accelerated to a 3.2% annualized pace in the second quarter
- Walmart should be the most in focus this week due to its third-quarter outlook
Goldman Sachs economists have issued a warning about a potential slowdown in consumer spending, citing the fading impact of higher-than-planned tax refunds on second quarter sales. The US consumer has displayed remarkable resilience amid high gas and food prices, but this resilience may soon be tested. In the second quarter, sales among consumer-facing companies rose at a healthy pace, with the median S&P 500 consumer discretionary company seeing a 5.9% year-over-year increase and the median consumer staples company experiencing a 3.9% rise. The strength in consumer spending was broad-based, with same-store sales accelerating for companies serving both lower- and higher-income consumers.
