Consumers Spend Down Pandemic Savings as Inflation Erodes Purchasing Power
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Consumers continue spending but economists question sustainability as savings rate drops and incomes decline.
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Excess savings gathered during pandemic appears gone for middle and low income households.
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Inflation reduces purchasing power and delinquencies tick up on loans and credit cards.
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Holiday spending expected to remain high though higher wealth doesn't always mean more liquidity.
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Cracks showing in balance sheets with savings dwindling from inflation and debt repayment.