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Americans began the new year with a spending spree, but businesses are not sure how long it can last. There's a lot riding on the answer, since consumer spending is the backbone of the U.S. economy.
Americans' spending habits have been hard to get a handle on, as consumer spending appears uncorrelated to economic data.
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Consumer spending in the U.S. was high in 2022. Stimulus-boosted savings accounts aren’t gone yet but consumers are saving less now and may be finally curbing their record spending habits.
Consumers have flummoxed economists for most of the past year with their split personalities on robust spending habits measured alongside their increasing economic pessimism.