But those adjustments — the most drastic since the 1980s — seem like they may have temporarily dimmed strong demand rather than snuffing it out decisively. The housing market has cooled and consumer spending had shown clear signs of pulling back in recent months, but the labor market has remained very strong and some parts of the economy appear to be on the brink of accelerating again.The retail sales report “suggests that any sign we got late last year that consumer spending was flagging was a bit of a false signal,” said Jonathan Millar, senior U.S. economist at Barclays. “It suggests that consumers are in pretty good shape here: The Fed’s rate hikes haven’t done a lot to slow spending.”Understand Inflation and How It Aff …
