US consumers defy gloomy outlooks, keep spending at brisk pace despite high prices
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Despite high prices and gloomy outlooks, US consumers are still spending at a brisk pace, confounding economists. It's unclear how long this resilience can last.
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Economists say spending won't likely continue as households deplete savings and rely more on credit cards. But no one knows for sure where things are headed.
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Steady hiring, low unemployment, and healthy finances for most post-pandemic households are driving robust spending, especially on discretionary items.
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Wealthier households have seen substantial gains in assets and are fueling spending on experiences like travel and dining out. Wages are rising faster than inflation for many lower-paid workers too.
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Headwinds like student loan repayments and potential government dysfunction could slow spending, but impacts remain uncertain. Visa execs see no "meaningful impact" yet from loan repayments.