Economy Propped Up By Three 'A-Pillars,' Says EY's Daco

EY's Chief Economist Greg Daco believes that the US economy is currently being propped up by three narrow, interconnected ‘A-pillars’: affluent consumers, artificial intelligence-fueled investment and asset price gains. New equity wealth has boosted consumer spending, which accounts for about two-thirds of demand in the economy – but also skewed it toward the rich. This comes as US consumer sentiment fell in November to one of the lowest levels on record as Americans’ views of their personal finances soure, with consumers becoming increasingly anxious about the high cost of living and job security. Daco joined Carol Massar and Tim Stenovec on 'Bloomberg Businessweek Daily' to discuss the weight of the three 'A-Pillars' and dwindling consumer sentiment. (Source: Bloomberg)