US Consumer Spending Continues Amid High Prices and Gloomy Outlooks, Despite Economists' Warnings

US Consumers Defy Predicted Economic Slowdown, Buoyed by Strong Hiring, Healthy Finances and Increased Wealth Accumulation Amid Pandemic Recovery

US consumers are demonstrating resilience, continuing to spend despite high prices and gloomy economic outlooks, leading to robust economic growth.
Despite warnings from economists about potential economic slowing, consumer spending is being driven by strong hiring, healthy personal finances, and increased wealth accumulation during the COVID-19 pandemic recovery.
US households have leveraged savings from stimulus aid and reduced opportunities to travel, dine out, and visit entertainment venues during the pandemic. This extra savings pool is reportedly nearly depleted.
Inflation is slowing down with rates at 3.7%, compared to a peak of 9.1% in June 2022. With average wages beginning to outpace price gains, low-paying industries are increasing wages to attract and retain workers.
The net worth of the median US household jumped 37% from 2019 through 2022, largely due to rising home prices and a growing stock market. However, wealthier households have seen substantial increases in home values and stock portfolios, driving consumer spending.
While there are cautionary signs in the economy, such as impending student loan repayments and the risk of a government shutdown, these challenges may not prove as damaging as feared. Credit card spending remains stable across all segments, from high to low earners.