Overview

• US consumers are demonstrating resilience, continuing to spend despite high prices and gloomy economic outlooks, leading to robust economic growth.
• Despite warnings from economists about potential economic slowing, consumer spending is being driven by strong hiring, healthy personal finances, and increased wealth accumulation during the COVID-19 pandemic recovery.
• US households have leveraged savings from stimulus aid and reduced opportunities to travel, dine out, and visit entertainment venues during the pandemic. This extra savings pool is reportedly nearly depleted.
• Inflation is slowing down with rates at 3.7%, compared to a peak of 9.1% in June 2022. With average wages beginning to outpace price gains, low-paying industries are increasing wages to attract and retain workers.
• The net worth of the median US household jumped 37% from 2019 through 2022, largely due to rising home prices and a growing stock market. However, wealthier households have seen substantial increases in home values and stock portfolios, driving consumer spending.
• While there are cautionary signs in the economy, such as impending student loan repayments and the risk of a government shutdown, these challenges may not prove as damaging as feared. Credit card spending remains stable across all segments, from high to low earners.