1.13 Consumer Caution Hits US Retail Sales Struggling US retailers reported falling sales. Top retailers JC Penney, Barnes and Noble and Best Buy report likefor-

like sales down between 9 and 12 per cent. Walmart and Macy’s also report a downturn in sales. ‘Consumers are spending later and spending less’ said Walter Loeb, a specialist retail analyst.

Source: Financial Times, 20 August 2013 Explain how a fall in consumer expenditure influences the quantity of real GDP demanded and aggregate demand.