Despite numbers showing a healthy economy overall, lower-income spenders are showing the strain
Cracks are showing in one of the main pillars keeping the economy out of a recession: resilient spending by U.S. households
NEW YORK (AP) — Cracks are showing in one of the main pillars keeping the economy out of a recession: resilient spending by U.S. households.
Consumer goods giants from PepsiCo to Kraft Heinz have described recently how the combination of high inflation and higher interest rates is hurting their lower-income customers.
It’s the culmination of everything getting more expensive amid high inflation, even if it’s not as bad as before, and the drag of higher interest rates because of more expensive credit-card and other payments.
Remarkably resilient spending by U.S. consumers overall has been one of the main reasons the economy has avoided a recession, at least so far. Capitulation at the lower end of the spectrum could be the first crack for the economy.
