People are spending less on autos?

Strong U.S. consumer spending might lose a pillar of support. Auto sales have been a bright spot for overall U.S. retail sales of late, mostly holding up in good months and bad. Even in July, when retail sales missed expectations, sales at autos and parts dealers rose.

But disappointing auto-industry figures unveiled earlier this month are a concern. And it is the auto dealers that might go from positive catalyst to deterrent in Thursday’s retail-sales report, one of the final major economic data points the Federal Reserve will consider before its highly anticipated policy meeting next week. The auto business is highly cyclical. Its strength in recent years, fueled in part by cheap credit and low gas prices, is now feeling the strain. Easy lending conditions might have pulled future demand forward. That helps results in the short run, but could prove problematic over the longer term.

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