Driving the Economy
Consumer spending is one of the main factors that moves the economy forward, accounting for about two-thirds of the U.S. GDP.
It’s also at the heart of recent recession worries, as economists have grown concerned high inflation could make consumers stop spending as their cost of living goes up.
Feeling Financially Secure
Americans are still splurging on concerts, movies, and even vacations, despite price increases across the board. It is helped by a few factors:
1. A strong labor market. Job prospects have been bountiful over the last few years, and unemployment remains close to multi-decade lows.
2. Savings stockpiles. Savings skyrocketed during the pandemic, and fueled savings has the economy reopened.
3. The “Buy Now, Save Later” mentality. After seeing how quickly prices can rise, consumers might opt to lock in big purchases now, in case costs increase again.
But how long can this splurging continue?
While the spending frenzy is fueling America’s growth, it’s not helping people’s emergency savings, which many have fallen behind on as prices rose.
So when you treat a loved one to a nice gift on Black Friday, give yourself a pat on the back, too. You’re doing your part to keep the economy afloat.
Read more reporting here .
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