- Despite high interest rates, inflation, and shrinking savings, US spending has perplexed economists by surging, as evidenced by the recent 9.6% year-over-year increase in Cyber Monday sales.
- Consumer spending growth accounted for most of the 4.9% increase in Q3 GDP.
- This growth largely derives from the “unprecedented” increase in accumulated US household savings following government pandemic stimulus programs.
- However, this trend will eventually reverse as student loan repayments resume and growing credit card debt limit future spending power.
