US | Here comes record-breaking consumer spending growth
Spend, save, and pay down debt – that’s exactly what US consumers did in early 2021. This supported a 14ppts jump in the personal savings rate to 27.6% – its second-highest reading ever after April 2020 – and boosted households’ excess savings to $2.3tn. The strong US consumer showing at the end of Q1 sets the tone for a summer boom.
What you will learn from this report:
- We foresee real consumption growth at 9.6% this year – the strongest performance since 1946.
- We expect US households will use about 13% of the $2.3tn in excess savings accumulated since the pandemic’s onset to smooth their outlays, supporting 5.1% consumer spending growth.
- Should consumers spend 45% of their excess savings over the next 18 months, in line with the marginal propensity to spend out of income, real GDP could be 2.5% higher than in our baseline in 2022.
Tags:
Related Services
Post
Trump policies provide tailwinds for industries, with exceptions in Japan
We expect the impact of Trump policies will be a net positive for Japan. The boost from higher import demand due to expansionary fiscal policies will likely overwhelm the adverse impact of targeted tariffs on Japan. The US is Japan's biggest goods export destination, accounting for 20% of total. Most traded items such as machinery and automotives are set to benefit from higher investment demand and consumer spending.
Find Out More
Post
Alberta’s success at attracting migrants is building pressures
Alberta's population has grown rapidly over the last three years, driven by a surge in international migration.
Find Out More