Spending Slowdown Risking US 'Jenga Tower' Economy
Market Intelligence Analysis
AI-PoweredThe US economy is showing signs of strain, with low-income households pulling back on spending due to tight budgets and high living costs, while high-income households continue to drive growth, raising concerns of a potential slowdown.
Market impact analysis based on bearish sentiment with 80% confidence.
Article Context
The resilience of the US economy and growth driven by high-income households is masking an underlying economic strain that is bleeding from the lowest earners to the middle class. The richest 10% of households are fueling nearly half of total US spending, while lower-income families are pulling back in the face of tight budgets and still-high living costs. This divergence in spending is fueling concern that the US is becoming susceptible to a more pronounced slowdown. Bloomberg's Catarina Saraiva joined Norah Mulinda and Bailey Lipschultz on 'Bloomberg Businessweek Daily' to break down the US "jenga tower" economy. (Source: Bloomberg)
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