Fox Business: Consumers Are Propping Up the US Economy, But They're Going into Debt to Do So
Article by Megan Henney in Fox Business
Americans' commitment to spending, even in the face of high inflation and interest rates, has kept the U.S. economic engine running for the past two years, but that may finally be coming to an end.
Households are draining their savings and racking up a historic amount of credit card debt, which could finally bring to an end the post-COVID-19 spending spree.
"Americans with jobs and money in their pockets are going to spend. However, as the economy slows as we move through the middle portion of this year and the labor market softens, we continue to believe the holiday spending that occurred last year was a bit of a last hurrah for the consumer," Scott Wren, Wells Fargo senior global market strategist, wrote in a note on Wednesday.
Consumer spending, which accounts for about two-thirds of GDP, was a major component of the surprisingly strong reading. It rose ......