The hedonism of the US consumer is a keystone of the global economy. Today’s US retail sales number matters. It is also complicated. Retail sales do not capture most of the switch to spending on services. Some of this could be structural (flexible working may encourage more spending on services). The headline data hides divergence—low income households have less spending power than middle income consumers. Citizens of some states like Florida may struggle to spend in stores when utility bills are soaring.
