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- US consumer spending — especially on physical goods — has been in a yearlong squeeze.
- Even as inflation cools, high prices are still putting a dent in household budgets.
- The increased frugality means retail brands are having to balance creativity and discipline.
US consumers are in a weird place this summer.
People are still spending money, but there's an uncomfortable awareness that years of price hikes mean each dollar doesn't go as far as it used to.