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Decelerating Income Growth Will Dampen U.S. Consumer Spending in 2H24
Consumer spending growth is waning amidst sticky inflation, weaker income growth and deteriorating consumer sentiment, setting the stage for below trend consumer spending growth in 2H24, according to a new Fitch Ratings report. “Fitch expects annual consumer spending growth of 1.9% in 2024, a modest slowdown from 2.2% in 2023. Much of the slowdown is expected to kick in during 2H24 as income growth decelerates further, the boost from pandemic savings dissipates and higher real interest rates persist,” said Olu Sonola, head of U.S. economic research. Household nominal disposable income increased in 1Q24 by 4.3%, ... (full story)