Taking the Pulse of the US Consumer

The US consumer market shows resilience, even with some areas of concern. Overall spending remains strong, particularly in discretionary categories, thanks to solid growth in labor income. However, rising delinquency rates are becoming a concern, especially among consumers with lower credit scores and those who have taken out new loans at higher interest rates. This divide can be partly attributed to the "lock-in effect" of low mortgage rates, which benefits higher-income homeowners, while lower-income families are struggling with escalating housing costs. Looking ahead, consumer spending is expected to continue growing, though at a slower pace.