Concerns About Consumer Spending

Current consumer behavior indicates a potential downturn in spending, despite positive retail sales figures. High credit card debt, reaching $1.3 trillion, along with increasing delinquency rates, suggest that consumers may be running out of cash. This imbalance raises doubts about the sustainability of consumer-driven economic growth, and the gap between reported GDP strength and consumer financial realities could signal underlying economic vulnerabilities. Analysts remain cautious, contending that historical data may not fully reflect future spending capabilities.