US Consumers Dial Back in Sign of Anxiety Heading Into Holidays

US consumers showed signs of fatigue leading up to the longest government shutdown, and their outlook has worsened ever since, sending a note of caution heading into the holiday-shopping season.

Retail sales, not adjusted for inflation, rose a tame 0.2% in September after several months of more robust spending, according to data released Tuesday. A more current report from the Conference Board showed consumer sentiment slid to the lowest in seven months, reflecting anxiety about the labor market and the economy.

“It’s a picture of consumption — which has been a real engine of growth over the last few years ...