American Consumer Low on Cash
Posted on 04/14/2023
With consumer spending making up 70% of gross domestic product (GDP), the mood of the shopper makes an impact on the overall economy. Retail sales fell .4% in March, while sales excluding building and transportation fell 1%. Experts at the U.S. Federal Reserve have also raised concerns that the U.S. will enter into a recession this year.
Despite higher interest rates, consumers are still wired to spend. Credit card debt reached a high of US$ 930 billion in March of this year. In comparison, that number was US$ 800 billion in 2019. With jobs still robust, consumers may be able to work off the balances, as some fast food companies are offering accelerated pay, and even same day pay in some cases. The average credit card balance an American carries is US$ 5,800.
