Edited by Emma W. Thorne, Editor at LinkedIn News
Americans are spending more, driving economic growth even as hiring slows and consumer confidence tumbles to its lowest in more than a decade. Spending is up about 2.6% this year, even taking inflation into account.
So how does that make sense?
Brian Fabes of NORC at the University of Chicago says high earners are driving much of the trend. There may be trouble ahead, though: EY Chief Economist Gregory Daco warns that “slowing income growth and declining savings rates suggest households’ spending capacity will become increasingly constrained.”
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