US media survey: US households are running out of savings, and the US economic engine will lose momentum early next year. Interviewee | Savings | US
Shopping for American consumers
According to the Business Insider website on September 12th, American households are running out of savings due to experiencing the highest borrowing costs in 22 years. Affected by this, surveys show that the main engine of US economic growth is expected to lose momentum in early 2024.
A survey conducted by Bloomberg's research firm "Market Dynamics Pulse" on 526 investors showed that more than half of the respondents believed that personal consumption, the main driver of economic growth, would decline in early 2024, and another 21% believed that this reversal could occur as early as the last quarter of this year. Amidst historical inflation and soaring borrowing costs, the US market is experiencing a shortage of funds. According to research by the Federal Reserve Bank of San Francisco, household savings in the United States have been declining every month for the past 23 months and are expected to dry up in the third quarter of this year.
As American household savings are about to run out, the fate of the US economy will also be reversed. CEO of Double Line Capital, Gonlak, stated that American consumers are facing a series of "difficulties", including rising costs of living, rising rents, increased credit card interest rates, recovery of student loan repayments, and maturing taxes. Gunlak warned that due to consumers having to pay interest, consumer activities will come to a halt, and the US economy will also be in trouble for about six to eight months in the future.
Copyright works from overseas websites are not allowed to be reproduced without authorization.