Posted 2/29/2024, 11:05:55 PM
Americans Drain Pandemic Savings to Boost Spending, But Retirements and Slowing Wage Growth Spell Trouble for Consumer Spending
- Americans are saving less income and spending more, supporting economic growth recently
- But households are expected to boost savings again this year, acting as a drag on consumer spending
- Retirements are hitting a record high, with more Americans shifting from paychecks to fixed incomes
- Households have drawn down the extra pandemic savings they accumulated to historical lows
- If wage growth slows as projected, it could mean weaker consumer spending and higher recession risk
