Consumer Spending Remains High But May Soon Slow as Savings Dwindle and Debt Rises
• American consumers have continued spending despite high inflation and interest rates, propping up the economy • This spending has been fueled by excess pandemic savings, cash-out mortgage refinancing, and rising willingness to take on debt • Pressures like high housing costs, ballooning credit card debt, and dwindling savings may soon curb consumer spending • More consumers are falling behind on credit card payments as prices remain elevated • Experts predict consumer spending may slow by the 2022 holiday season or early 2024 as savings run out and debt becomes unsustainable