- ORIGINAL NEWS
Consumer spending growth will slow in 2024, economist predicts — it’s ‘not necessarily sustainable’
- SUMMARY
Consumer spending in 2023 remained strong despite inflation and high-interest rates.
However, this resilience may not last.
Signs of strain are emerging, such as rising credit card debt and a larger proportion of cardholders carrying month-to-month debt.
While low unemployment has supported consumer spending, economists predict much slower payrolls growth in the coming months.
The Federal Reserve’s actions with interest rates will also affect borrowing costs and credit conditions, impacting spending decisions.
Overall, consumer spending is expected to face challenges in the future.
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
“Consumer spending remained remarkably resilient throughout 2023, even in the face of prolonged inflation and high interest rates.”
“A year ago, many commentators were skeptical and calling for a recession, but the recession never came. With each passing month, consumers kept spending despite inflation and higher borrowing costs.”
Negative
“But that’s unlikely to continue, according to Jack Kleinhenz, chief economist at the National Retail Federation.”
“Nonetheless, those tailwinds are not necessarily sustainable, Kleinhenz said in the January issue of NRF’s Monthly Economic Review, released Tuesday.”