American households: confident but not overly

While businesses are being prompted to cut their spending by uncertainty, households are consuming at a constant rate. This stability is keeping total growth anchored and is reflecting income growth, particularly that from labour. But it is also being driven by a high degree of confidence, which has returned to its pre-financial crisis levels. With more confidence, consumers are better able to smooth income by drawing on savings and credit. That said, households are less optimist...