Part 6/8:
As noted in the report, the service sector has also felt the squeeze, particularly in the restaurant industry, where year-over-year spending has declined significantly. This indicates that Americans are cutting back on dining out—a common first step in budget tightening.
These trends signal not only unrest among consumers but also a concerning correlation with rising unemployment claims. Historical data suggests that when spending declines in tandem with rising unemployment claims, the potential for recession escalates as companies are forced to lay off workers to reduce costs.