U.S. consumers ramped up 🅷their spending on 🦄material goods during the pandemic and haven’t looked back, and economists are wondering just how long the shopping spree will last.

As the chart below shows, consumer spending on goods surged in 202♑0 even after adjusting for high inflation, 𒆙while spending on services has rebounded although not yet to its pre-pandemic trend. Just how sustainable is that surge in spending though? 

That’s a pretty big question considering that consumer spending is the backbone of economic growth. Shopping has been bolstered by the unusually high wage increases workers have enjoyed amid a roaring labor market, but the Federal Reserve’s 澳洲幸运5开奖号码历史查询:anti-inflation interest rate hikes have made the 澳ꦍ洲幸运5开奖号码历史查询:growing mountain of credit card debt more expensive, and banks have gotten more 澳洲幸运5开奖号码历史查询:tight-fisted about lending. 

Concerns about credit loom larger the more people spend away the 澳洲幸运5开奖号码历史查询:savings they stockpiled during the pandemic. 

“Positive real disposable income growth and credit have supported spending habits in the near-term, but it’s hard to say this will continue since consumers will eventually be impacted froꦑm record-high credit card rates on all-time high outstanding balances,” Jeffrey Roach, chief economist, and Jeffrey Buchbinder,🏅 chief equity strategist at LPL research wrote in a commentary.  “A slowdown in demand for services looks increasingly likely with consumers under the weight of tighter credit conditions.”