TOP ANALYST SEES ‘GENUINE CRACKS FOR MID- TO LOWER-END CONSUMERS’ AS THE K-SHAPED ECONOMY CONTINUES TO BITE
https://s.yimg.com/ny/api/res/1.2/.2Uhfi3TBW2mQbsO8GCjMQ--/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyMDA7aD04MDA-/https://media.zenfs.com/en/fortune_175/7fa66f426879dd4efb27203a2b891817
✍️ The Global Investment Committee at Morgan Stanley Wealth Management is warning of significant headwinds facing the narrative surrounding the 'resilient U.S. consumer', despite consumer spending maintaining a steady growth rate.
👉 Consumer spending has maintained a steady nominal growth rate of 5% to 6% 👉 The K-shaped economy is a major concern, with the top 10% doing well, but the lower 60% facing rising pressure 👉 Mounting credit stress and delinquencies are a key factor, with subprime 60-day delinquencies reaching a 31-year high 👉 An affordability crisis is also a concern, with persistently high price levels and a stable 3% inflation rate 👉 Deteriorating labor sentiment is weakening, with job openings falling and layoffs spiking
-- #LisaShalett #DavidKelly #TorstenSlok #business
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