I’m Still Spending, Yeah Yeah Yeah (US consumer)

Last year, American households embarked on the festive season with a healthy appetite for spending, a trend amplified by the desire to move on from Covid. With purchasing disrupted by global supply chain problems, this was one of the causes of the surge in inflation. This year, supply is not constrained, and inventories even look on the high side. In view of the latest macroeconomic data, demand is still robust. Too much so, we might say, seen in relation to productivity gains in...