According to the Federal Reserve Bank, the savings cushion that helped Americans weather high prices in recent years is now completely depleted, which will shake the resilience of consumer spending.
On the other hand, the labor market is growing and is currently keeping consumers afloat. But its prospects for improving the overall situation are also in question, as household debt has reached record levels and more Americans are falling behind on their credit card payments. One-third of households in a recent Census Bureau survey reported difficulty paying for ordinary expenses, and savings rates have declined.
This situation is hard for the economy to take, as people are spending less and being more careful with their money.
So, in your opinion, do you think we will see an economic downturn in the coming year?
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