Arunima Sinha and Heather Berger, analysts at Morgan Stanley, shed light on the current state of US consumer economics. They discuss a surprising uptick in consumer spending, with a notable shift towards discretionary items post-COVID. However, they also delve into the rising delinquency rates among lower-credit score borrowers, linked to high inflation and interest rates. The conversation highlights the complex dynamics of the housing market and consumer behavior, balancing optimism with caution as they assess the future of consumer spending.
